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RNS Number : 1212Q
Ocean Outdoor Limited
04 June 2018
Ocean Outdoor Limited Acquires Forrest Media
London, United Kingdom, 4 June 2018 - Ocean Outdoor Limited
(LSE: OOUT) ("Ocean") has acquired Forrest Media, a leading
provider of large format outdoor media solutions in Scotland, for
an enterprise value of GBP32 million.
The transaction expands Ocean's national footprint and enhances
its position as a leading large format digital out-of-home operator
in the UK, with an offering which will now include Scotland's
capital city of Edinburgh and the economic centre of Glasgow.
Forrest Media is recognised as the market leader in Scotland and
the North of England for premium digital out-of-home, backed by its
strong portfolio of locations throughout Edinburgh, Glasgow and
greater Scotland as well as Manchester and Newcastle. For the full
year 2017, Forrest Media delivered net revenue of GBP8.4 million
and adjusted EBITDA of GBP3 million (based on unaudited
accounts).
Incorporating Ocean's presence in London, Birmingham,
Manchester, Leeds, Liverpool, Newcastle, Bristol and Nottingham
with Forrest Media's presence in Glasgow and Edinburgh gives Ocean
a market leading position across the UK, underpinning Ocean's
strategic vision and plan of "Digital Cities for Digital
Citizens(TM)".
The acquisition further builds upon Ocean's strategy to create a
scale out-of-home media company through consolidation,
complementing Ocean's strong digital organic growth initiatives, as
detailed at the time of Ocelot Partners' (the vehicle founded by
LionTree and Andrew Barron) acquisition of Ocean in March.
"Forrest Media are the champions of out-of-home in Scotland and
it's a business we have long admired. This is a hugely exciting
time for both companies and the sector. We are combining Scotland's
most iconic assets with Ocean's unique technology and award winning
brand." said Ocean CEO Tim Bleakley.
Chris Trainer said: "Ocean are a fantastic market leading
business and the combination today with Forrest Media now delivers
a truly national 'footprint', which we believe will have very
significant benefits in our industry, with great opportunities for
the whole team."
Ocean has identified incremental commercial synergies from
combining Forrest Media assets with the Ocean portfolio. The
transaction was funded through Ocean's cash on hand and will be
immediately accretive to earnings.
The Forrest Media management team will continue under the
day-to-day leadership of managing director Marc Keenan. Chris
Trainer, the Founder of Forrest Group, becomes Chairman of the
Scottish business, Ocean Scotland. Ocean has also entered into new
long-term lease agreements with other Forrest Group entities for
sites owned by such entities.
Trading in Ocean's ordinary shares remains suspended. Ocean
intends to seek re-admission of its ordinary shares (subject to
meeting relevant eligibility criteria) to a standard listing on the
Official List and trading on the London Stock Exchange as soon as
practicable.
About Ocean Outdoor
Ocean Outdoor is the UK's leading out-of-home advertising
company, with its portfolio of large format digital screens, banner
and super premium landmark advertising sites.
Ocean Outdoor operates the most iconic outdoor sites in London,
Birmingham, Manchester, Liverpool, Glasgow, Newcastle, Nottingham
and Leeds. They include Landsec Piccadilly Lights, Britain's
largest advertising site London's BFI IMAX, the Two Towers East and
Two Towers Manchester, and the Liverpool media wall, the UK's 2(nd)
largest full-motion advertising site. Ocean also holds exclusive
rights for the most premium urban shopping malls in Europe,
Westfield London and Westfield Stratford, which has more than 50
million shoppers with spending power approaching GBP2.1
billion.
About Forrest Media
Forrest Media is a recognised leader in out-of-home in Scotland
(Glasgow, Edinburgh) with a strong presence in the key northern
cities of Manchester and Newcastle.
Forward-Looking Statements and Disclaimers
This announcement does not constitute or form part of any offer
or invitation to purchase, otherwise acquire, issue, subscribe for,
sell or otherwise dispose of any securities, nor any solicitation
of any offer to purchase, otherwise acquire, issue, subscribe for,
sell, or otherwise dispose of any securities.
The release, publication or distribution of this announcement in
certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is
released, published or distributed should inform themselves about
and observe such restrictions.
Certain statements in this announcement are forward-looking
statements which are based on Ocean's and Forrest Media's
expectations, intentions and projections regarding its future
performance, anticipated events or trends and other matters that
are not historical facts, including expectations regarding (i) the
ability of Ocean to timely effect re-admission of Ocean's ordinary
shares on the London Stock Exchange; (ii) the ability of Ocean to
meet the eligibility criteria and effect a listing of its ordinary
shares on the London Stock Exchange, (iii) the future operating and
financial performance of Ocean and Forrest Media. These statements
are not guarantees of future performance and are subject to known
and unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements, including (i) economic
conditions, competition and other risks that may affect Ocean and
Forrest Media's future performance; (ii) the risk that securities
markets will react negatively to the transaction or other actions
by Ocean, Forrest Media and the combined company; (iii) the risk
that the transaction disrupts current plans and operations as a
result of the announcement; (iv) the ability to recognise the
anticipated benefits of the combination of Ocean and Forrest Media
and of the combined company to take advantage of strategic
opportunities; (v) costs related to the proposed transaction; (vi)
the limited liquidity and trading of Ocean's securities; (vii)
changes in applicable laws or regulations; (vii) the possibility
that Ocean or Forrest Media may be adversely affected by other
economic, business, and/or competitive factors; and (viii) other
risks and uncertainties. Given these risks and uncertainties,
prospective investors are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date of such statements and, except as required by
applicable law, neither Ocean nor Forrest Media undertake any
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise. Nothing in this announcement constitutes or should be
construed as constituting a profit forecast.
This announcement contains inside information as defined in
article 7 of the Market Abuse Regulation (EU) No 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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