Premier Outdoor Media sells OOH assets to Lamar Advertising

MOUNT LAUREL, N.J. - Premier Outdoor Media, a key independent operator of out-of-home advertising assets in the Northeast Corridor, has completed the sale of its OOH assets to Lamar Advertising Company (NASDAQ: LAMR), a major player in outdoor advertising in North America with a market capitalization of $11.89 billion. While the transaction details have not been made public, InvestingPro data shows Lamar has maintained profitability over the last twelve months with revenue of $2.21 billion. The transaction details, including the financial terms, have not been made public.

Established in 2018, Premier Outdoor Media expanded its digital display count significantly under the guidance of industry veterans Dominick Vastino and Sean Corbett. The company’s growth strategy led to a more than fivefold increase in digital displays, making it the largest independent digital OOH network in the Philadelphia market.

The acquisition by Lamar Advertising Company incorporates nearly 200 billboard faces, with 45 digital units, into its inventory. These assets are strategically located across New Jersey, Delaware, Maryland, Pennsylvania, and New York, strengthening Lamar’s presence in the Philadelphia and New York markets. This move aligns with Lamar’s strategy to grow its portfolio with high-quality, real estate investment trust (REIT)-qualified assets. According to InvestingPro, Lamar offers an attractive dividend yield of 5.35% and has demonstrated strong returns over the past five years. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Tim Wegener, Managing Partner at Caruth Capital Partners, expressed satisfaction with Premier’s achievements, highlighting the company’s focused growth strategy and the development of high-quality assets. Dominick Vastino, CEO of Premier, also remarked on the successful creation of a valuable platform and expressed confidence in Lamar’s capability to continue providing exceptional service to Premier’s clients.

Sean Reilly, CEO of Lamar, noted that the acquisition enhances the company’s position in key markets and follows its strategic direction. Lamar Advertising Company, founded in 1902, is one of the largest outdoor advertising companies in the U.S. and Canada, boasting over 360,000 displays, including the nation’s largest network of digital billboards. The company’s financial strength is reflected in its EBITDA of $994.04 million. InvestingPro analysis indicates the stock is currently trading slightly above its Fair Value, with additional financial health metrics and ProTips available to subscribers.

Advisory services for the transaction were provided by Moorgate Securities LLC, which acted as the exclusive financial advisor to Premier, while Munsch Hardt Kopf & Harr, P.C. and Kean Miller LLP served as legal advisors to Premier and Lamar, respectively.

This news is based on a press release statement and reflects the current expansion and consolidation trends within the outdoor advertising industry.

In other recent news, Lamar Advertising Company disclosed its fourth-quarter 2024 earnings, which fell short of market forecasts. The company reported an earnings per share (EPS) of -$0.01, significantly missing the expected $1.43, and revenue of $579.6 million, below the forecasted $583.19 million. Despite these misses, Lamar achieved a 4.2% increase in full-year acquisition-adjusted revenue, reaching $2.21 billion, and a 4.5% rise in adjusted EBITDA, totaling $1.03 billion. Citi analysts, led by Jason Bazinet, adjusted the price target for Lamar Advertising to $128.00 from $121.76, maintaining a Neutral rating on the company’s shares. This adjustment followed the company’s earnings report and was based on extending the valuation period to 2026. Looking ahead, Lamar plans to expand its digital advertising network in 2025 and anticipates $150 million in mergers and acquisitions activity. However, the company expects challenges in replacing political advertising revenue. These developments come as Lamar continues to navigate a competitive advertising market.

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