APN Outdoor has emerged as one of the bidders for Here, There & Everywhere’s outdoor business, Adshel, in the company’s first big move since the arrival of new boss James Warburton.
Adshel: On the block
The outdoor giant – which failed to merge with Ooh Media last year – told the ASX this evening it had submitted an indicative offer of $500m to buy Adshel’s Australian and New Zealand businesses.
APN Outdoor is the latest outdoor giant with an interest in Adshel
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“Adshel’s street furniture business would provide an attractive complement to APN’s existing out-of-home product offering,” the announcement said.
It comes the same day rival outdoor company Ooh Media revealed that it had upped its bid for Adshel, to almost half a billion dollars.
Ooh Media: Upped its bid
Later this afternoon Adshel revled that Ooh Media was not the only bidder, with other offers more attractive.
APN Outdoor: Joining the race
If successful, APN Outdoor’s offer would put it back under the same roof as Adshel.
APN News Media – now known as HT&E – previously owned APN Outdoor. It sold the outdoor company to Quadrant Private Equity five years ago.
Quadrant then floated APN Outdoor on the ASX in November 2014.
HT&E: Ready to sell Adshel?
In 2016, HT&E took 100% ownership of Adshel from its US partner Clear Channel.
The AFR reports the Adshel board is engaging with APN Outdoor on the bid, because the offer does not demand exclusivity in the negotiations, which Ooh Media did.
APn Outdoor’s Warburton: Already on the acquisition trail
APN Outdoor’s bid comes after new CEO James Warburton signalled he was open to making acquisitions.
APN Outdoor said in its statement: “Notwithstanding APO’s interest in Adshel, the company continues to explore a variety of M&A [merger and acquisition] opportunities, which will improve its positioning and capabilities in the Australian and New Zealand media markets.”
The bids for Adshel come as the City of Sydney tender – which is focused on street furniture – progresses beyond expressions of interest.
Adshel is one of the only outdoor operators with expertise in street furniture, with the exception of City of Sydney incumbent, JC Decaux.