Lamar Advertising Company Acquires Five New Markets & Announces 2019 Distribution Plan
December 21 2018 - 12:32PM
Lamar Advertising Company (Nasdaq: LAMR), a leading owner of
outdoor advertising and logo sign displays, today announced that it
has acquired Fairway Outdoor Advertising’s billboard operations in
five U.S. markets from GTCR, LLC for a purchase price of $418.5
million.
“We are excited to add these high-quality, REIT-eligible assets
in attractive markets to our portfolio,” said Lamar chief executive
Sean Reilly. “This accretive acquisition, in addition to our
anticipated over 5% organic sales growth in Q4, gives us tremendous
momentum as we enter 2019.”
The all-cash acquisition adds more than 8,500 billboard faces,
including more than 135 digital displays, in North Carolina, South
Carolina, Georgia and Wisconsin. Lamar anticipates that the
acquisition will contribute approximately $70.0 million in revenue
in 2019. The purchase price represents an acquisition
multiple of approximately 12x Fairway’s trailing EBITDA, and Lamar
anticipates that it will realize approximately $4 million in
synergies in 2019.
“GTCR has done an excellent job operating these assets since
acquiring them in early 2015, and we are confident that we can
build upon their success,” Reilly said. “Given our familiarity with
the Southeast and the upper Midwest, we anticipate a seamless
transition.”
The transaction gives Lamar new full-service operations in
Greenville/Spartanburg, South Carolina; Raleigh-Durham, North
Carolina; Greensboro/Winston-Salem, North Carolina; Athens,
Georgia; and La Crosse, Wisconsin.
Lamar financed the acquisition using borrowings under its bank
credit facility and under a $175 million accounts receivable
securitization line arranged through PNC Bank, NA.
Kean Miller LLP and Locke Lord LLP acted as legal advisors to
Lamar.
In addition, subject to the approval of its Board of Directors,
Lamar announced today that it expects to make regular quarterly
distributions to stockholders in 2019 in an aggregate amount of
$3.84 per share, a 5.2% increase over aggregate distributions paid
or to be paid in 2018 of $3.65.
Conference Call InformationA conference call will be held for
investors and analysts on Friday, December 21, 2018 at 1 p.m.
Central time. Instructions for the conference call
and Webcast are provided below:
Conference CallAll Callers: 1-877-271-1828 or 1-334-323-9871Pass
Code: 38698
Replay: 1-877-919-4059 or 1-334-323-0140Pass Code:
69288995Available through Friday, January 4, 2019
Live Webcast: www.lamar.com
Webcast Replay: www.lamar.comAvailable through
Friday, January 4, 2019
Forward Looking StatementsStatements included
herein that are not historical facts, including without limitation
statements concerning the strategic and economic benefits of the
acquisition, are forward-looking statements. Such
forward-looking statements involve a number of risks and
uncertainties and are subject to change at any time. In the
event such risks or uncertainties materialize, Lamar’s results
could be materially adversely affected. The risks and
uncertainties include, but are not limited to, difficulties in
integrating the acquired markets that may lead to an inability to
realize the expected operating efficiencies, cost savings, revenue
enhancements, synergies or other benefits at the time anticipated
or at all, and other risks and uncertainties detailed from time to
time in Lamar’s filings with the Securities and Exchange
Commission, including those risks outlined in “Item 1A: Risk
Factors” in Lamar’s Annual Report on Form 10-K for the year ended
December 31, 2017, as supplemented by any risk factors contained in
Lamar’s Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. We caution investors not to place undue reliance on the
forward-looking statements contained in this document. These
statements speak only as of the date of this document, and we
undertake no obligation to update or revise the statements, except
as may be required by law.
About Lamar Advertising CompanyFounded in 1902, Lamar
Advertising Company (Nasdaq: LAMR) is one of the largest outdoor
advertising companies in the world, with more than 348,000 displays
across the United States and Canada. Lamar offers advertisers a
variety of billboard, interstate logo, transit and airport
advertising formats, helping both local businesses and national
brands reach broad audiences every day. In addition to its more
traditional out of home inventory, Lamar is proud to offer its
customers the largest network of digital billboards in the United
States with over 3,000 displays. Please feel free to explore our
website www.lamar.com or contact us at hello@lamar.com for
additional information.
Press Contact:
Buster KantrowDirector of Investor
RelationsLamar Advertising Company(225)
926-1000bkantrow@lamar.com
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