IPO Fuels Acquisition Ambitions for CBS Outdoor (and CBS Corp. Too)
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CBS Outdoor Americas will seek to buy smaller U.S. billboard companies now that its $560 million initial public offering is complete, ramping up competition with Lamar Advertising and Clear Channel Outdoor Holdings.
CBS Outdoor increased 7.5% to $30.09 at 10:02 a.m. in New York, after selling 20 million shares at $28 each, according to a statement yesterday. That was the high end of the $26 to $28 range. Parent CBS Corp., getting the bulk of the proceeds, will continue to own 83% of the company after the sale, filings show.
The billboard industry is ripe for consolidation, with independent owners accounting for 36% of the U.S. market, said Jeremy Male, CEO of the unit. CBS Outdoor’s estimated $50 million from the IPO, a credit line and a publicly traded stock provide currency for deals and a chance to stand out. CBS Outdoor, Clear Channel Outdoor and Lamar each have about a 20% share, he said.
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