Clear Channel Outdoor Holdings Inc (CCO) said on Thursday that it had entered into a definitive agreement to sell its Swiss business to Goldbach Group AG, an affiliate of TX Group AG, for as much as CHF 86.0 million ($92.7 million).
Clear Channel Outdoor Holdings’ Swiss business is expected to contribute nearly $9.7 million, excluding one-time items of $1.4 million, to Europe Segment adjusted EBITDA for the full year ended December 31st 2022.
The anticipated net proceeds from the transaction will be used by Clear Channel Outdoor Holdings to improve its liquidity position and increase financial flexibility, it said.
The sale is expected to be finalized in the second or third quarter of 2023, subject to regulatory approval and other conditions.
“The sale of our business in Switzerland is the result of our ongoing review of strategic alternatives for our European businesses and moves toward our goal of optimizing our portfolio in the best interests of our shareholders,” Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings Inc, said in a press release.
“This transaction allows us to exit a standalone and lower-priority market at a valuation that we believe reflects the quality of our Swiss assets, which are performing well. Our review of strategic alternatives for our European businesses remains ongoing, and we will continue seeking the disposition of certain of our lower-margin or lower-priority European assets,” the CEO added.
Moelis & Company LLC and Deutsche Bank Securities Inc advised Clear Channel Outdoor Holdings Inc on financial aspects of the deal, while Kirkland & Ellis LLP and Homburger AG provided legal advice.