Brisbane City Council votes to approve Adshel street furniture contract
Ooh Media, the new owner of Adshel, has confirmed the Brisbane City Council has voted to approve a 10-year contract with the street furniture business.
The Adshel brand name is set to disappear in coming months, but Ooh Media told the ASX Brisbane City Council voted to approve the contract with Adshel on November 27.
Mumbrella understands binding documentation has not yet been executed by the parties.
Brisbane City Council informed Ooh Media Adshel’s contract had been approved
The announcement followed reports of the contract win in the Courier-Mail last night.
Adshel had been working on obtaining Brisbane City Council’s street furniture rights for a number of months. Mumbrella understands French-owned JC Decaux was not involved in the tender.
“As announced by Ooh on 25 June 2018, Adshel was at that time tendering to renew the Brisbane City Council contract, having submitted a proposal in mid-June 2018 as part of a competitive tender process,” the ASX note said.
“While binding documentation has not yet been executed by the parties, Ooh has been informed that the Brisbane City Council voted to approve the contract with Adshel on 27 November 2018.
The win for Adshel comes two months after the completion of Ooh Media’s $570m acquisition of the street furniture business.
Since then, Ooh Media has implemented its integration strategy, which involves the removal of the Adshel brand, before the end of the year. Two weeks ago, Ooh Media revealed its new executive team, which saw Adshel CEO Mike Tyquin, chief revenue officer, Dave Roddick, and Ooh Media’s chief marketing officer, Michaela Chan, all leave the business.
The first announcement of Ooh Media’s Adshel acquisition was in June this year, after a bidding battle between Adshel, Ooh Media and APN Outdoor respectively. Once confirmed, Ooh Media’s Cook said “cost synergies” between $15m-$18m were set to occur, in order to avoid duplication and reduce outsourcing costs.
The contract win comes as the City of Sydney tender is underway. Mumbrella understands Ooh Media’s Adshel and JC Decaux are both involved in the tender.
