01:18 PM EST, 01/09/2025 (MT Newswires) -- Digital billboard company Clear Channel Outdoor ( CCO ) said Thursday it has agreed to sell its Europe-North segment to a Bauer Media Group subsidiary for $625 million to pay down debt and focus on its America and airports segments.

The cash consideration represents a 6.5-times multiple on the Europe-North segment's results for the 12 months ended Sept. 30. The transaction is expected to close in 2025, subject to regulatory approvals.

The advertising company plans to use net proceeds after transaction-related expenses to prepay in full a $375 million outstanding loan that was secured last March through its wholly owned subsidiary Clear Channel International, according to the joint announcement.

Proceeds leftover will be subject to the asset sale provisions of Clear Channel's remaining debts.

"This agreement to sell our Europe-North segment is another significant step in the execution of our strategic plan to optimize our portfolio and focus on growing our America and airports segments to organically improve cash flow and reduce leverage on our balance sheet," Chief Executive Scott Wells said.

Shares of Clear Channel Outdoor ( CCO ) closed down 3.5% on Wednesday and have declined about 20% over the last year. Major US exchanges, including the New York Stock Exchange and Nasdaq 100, fully closed equity and options markets on Thursday to observe a National Day of Mourning in honor of former US President Jimmy Carter.

Bauer Media Board Chair Yvonne Bauer said the acquisition will enhance the company's core media business and assist its digital transformation. "This move broadens our capabilities and strengthens our position as a major player in the highly competitive media industry," she said.

Clear Channel in October reported third-quarter revenue of $559 million, up 6.1% from the year earlier but flat sequentially. In its largest segment, America, revenue rose 5% year over year to $292.8 million. Airports revenue climbed 9% to $82.3 million while Europe-North revenue gained more than 11% to $166.4 million. The company narrowed its full-year revenue forecast to between $2.22 billion and $2.25 billion, lowering the upper part of the prior range from $2.28 billion.

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