Australia’s outdoor industry is set for big changes as Ooh Media buys AdShel and international giant JCDecaux moves on APN Outdoor.
Outdoor company Ooh Media has agreed a deal to buy Here, There & Everywhere’s (HT&E) street furniture company AdShel for $570m.
The deal follows a competitive bidding war against rival outdoor business APN Outdoor, which last week upped its bid to $540 million.
The deal will see Ooh Media acquire more than 21,000 poster faces and 800 screens across Australia and New Zealand and will establish Ooh Media as Australia’s largest outdoor business.
Ooh Media will cease using the AdShel brand within three months of the deal's completion, which will be finalised this year, subject to approval by the Australian Competition and Consumer Commission (ACCC),
Hot on the heels of the AdShel sale, APN Outdoor issued a trading halt on the Australian Stock Exchange (ASX), pending the release of an announcement by the company.
It is expected the company will announce its acquisition by the international outdoor giant JCDecaux. The French-based company submitted a $1.1 bn bid to buy the Australian outdoor company last week.
JCDecaux said APN Outdoor, which operates in the large format billboard segment, as well as in the transit, rail and airport segments, would be complementary to JCDecaux’s existing out-of-home media assets in Australia, which are primarily in the street furniture segment.
Out-of-home advertising boasts a 6% share of ad spend in Australia.