Scottish Radio Holdings (SRH) has agreed to sell Score Outdoor, its outdoor advertising division, to Clear Channel UK (CCUK) for a minimum of £33.5m.
It is intended that the transaction will create a business to rival Maiden and JCDecaux. Score Outdoor’s billboards across Scotland, the north west of England, the Midlands and the south west will be amalgamated with the business of CCUK’s More O’Ferrall, as the regions of the two businesses are complimentary, with few overlaps.
The £33.5 million cash payment is to be made on completion of the transaction, which is conditional on clearance from the Office of Fair Trading. Potential deferred payments on the deal could bring a further £24.0 million to SRH over the next four years, as the company focuses on the development of its radio stations and local newspaper portfolio. The deferred payments will be dependent on the achievement of certain gross sales targets at the newly enlarged More O’Ferrall business.
