Lamar Advertising Company Acquires Five New Markets & Announces 2019 Distribution Plan

Lamar Advertising Company, a leading owner of outdoor advertising and logo sign displays, announced that it has acquired Fairway Outdoor Advertising’s billboard operations in five US markets from GTCR, LLC for a purchase price of $418.5 million.

“We are excited to add these high-quality, REIT-eligible assets in attractive markets to our portfolio,” said Lamar chief executive Sean Reilly. “This accretive acquisition, in addition to our anticipated over 5% organic sales growth in Q4, gives us tremendous momentum as we enter 2019.”

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The all-cash acquisition adds more than 8,500 billboard faces, including more than 135 digital displays, in North Carolina, South Carolina, Georgia and Wisconsin. Lamar anticipates that the acquisition will contribute approximately $70.0 million in revenue in 2019.  The purchase price represents an acquisition multiple of approximately 12x Fairway’s trailing EBITDA, and Lamar anticipates that it will realize approximately $4 million in synergies in 2019.

“GTCR has done an excellent job operating these assets since acquiring them in early 2015, and we are confident that we can build upon their success,” Reilly said. “Given our familiarity with the Southeast and the upper Midwest, we anticipate a seamless transition.”

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The transaction gives Lamar new full-service operations in Greenville/Spartanburg, South Carolina; Raleigh-Durham, North Carolina; Greensboro/Winston-Salem, North Carolina; Athens, Georgia; and La Crosse, Wisconsin.

Lamar financed the acquisition using borrowings under its bank credit facility and under a $175 million accounts receivable securitization line arranged through PNC Bank, NA.

Kean Miller LLP and Locke Lord LLP acted as legal advisors to Lamar.

In addition, subject to the approval of its Board of Directors, Lamar announced today that it expects to make regular quarterly distributions to stockholders in 2019 in an aggregate amount of $3.84 per share, a 5.2% increase over aggregate distributions paid or to be paid in 2018 of $3.65.

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