Press Release: NextMedia closes sale of its outdoor advertising subsidiary to Lamar Advertising Company
Englewood, CO, November 21, 2012 – NextMedia Group, Inc. (“NextMedia”), a leading media company, announced that it has completed the sale of NextMedia Outdoor, Inc., its outdoor advertising subsidiary, to Lamar Advertising Company for $145 million. NextMedia is majority owned and advised by funds Strategic Value Partners, LLC (collectively, “SVP” or “Strategic Value Partners”) and Angelo, Gordon & Co. (“Angelo Gordon”).
With the completion of the transaction, NextMedia is now focused on its radio broadcasting business, which operates 33 stations across eight markets in the U.S.
SVP and Angelo Gordon have been actively involved in NextMedia since 2010. Initially, as the largest creditors to the company, the firms helped lead the restructuring of the business. Subsequently, they gained equity ownership of the company when it emerged from Chapter 11. Appointing and working closely with management, SVP and Angelo Gordon improved the existing operations, and expanded the outdoor advertising platform through acquisitions and a highly successful program to roll out digital billboards. This work greatly enhanced the value of NextMedia Outdoor and led to its ultimate sale. The sale has eliminated NextMedia’s debt and will add to the company’s cash balance.
“We are delighted with the sale of NextMedia Outdoor to Lamar Advertising Company. With the valuable assistance of SVP and Angelo Gordon, we grew our outdoor advertising operations and created a highly attractive business. This transaction allows us to focus solely on our radio operations,” said Jim Donahoe, CEO of NextMedia.
Victor Khosla, Founder and Chief Investment Officer of SVP, said: “We are pleased to have been able to partner with management to achieve the turnaround of and the growth in operations and performance of NextMedia Outdoor, and we look forward to continuing to help the team drive the value of NextMedia’s radio operations.”