NEW YORK and TORONTO – Out-of-home (OOH) advertising company Outfront Media Inc. has agreed to sell its Canadian business to Bell Media for $410 million in cash, subject to certain adjustments and a holdback, the two companies announced Monday.
The transaction is expected to close in 2024, subject to regulatory approval and other closing conditions, the companies’ joint press release says.
Bell Media already owns and operates the Astral OOH advertising network, which has more than 45,000 advertising displays across Canada, according to Bell Media’s website.
As of Dec. 31, 2022, Outfront Media’s Canadian business operated 9,325 total displays in Canada and generated revenues of US$91.9 million during that year, according to the press release.
Outfront Media has spent the last several months expanding its presence in Canada, rolling out earlier this year several digital bridge overpass screens in London, Ont., along with digital displays in Markham, Brampton, Hamilton and Vaughan, Ont.
In December 2022, Outfront Media Canada acquired several static poster and digital billboard assets in St. John’s from Digital Outdoor Media Inc. This followed Outfront Media Canada’s June 2022 acquisition of a portfolio of digital billboard assets in Calgary from Leading Outdoor Inc.
In September 2022, Outfront Media Canada was awarded a 10-year contract by the City of Barrie in Ontario for exclusive rights to the city’s transit shelter advertising program.
“The out of home category continues to grow in importance as a mass reach advertising vehicle, while digital formats allow for greater targeting capabilities,” Stewart Johnston, senior vice-president of sales and sports at Bell Media, said in the release.
“Outfront’s diverse array of Canadian assets reinforces Astral’s dedication to delivering impactful, multi-channel marketing solutions, while accelerating Bell Media’s digital strategy. The synergy between Outfront’s established expertise and our commitment to driving innovation will provide clients with tremendous opportunities on a true coast-to-coast footprint,” Johnston said.
