CBS Outdoor Americas Inc., the billboard company spun off from broadcaster CBS Corp., agreed to acquire some advertising assets from Van Wagner Communications LLC for $690 million in cash.
The purchase gives CBS Outdoor 1,100 large billboard displays in 11 U.S. markets, according to a statement today. The deal requires regulatory approval and is expected to be completed next year.
Chief executive officer Jeremy Male said in early 2014 that CBS Outdoor intends to acquire smaller billboard companies as it competes with Lamar Advertising Co. and Clear Channel Outdoor Holdings Inc. The assets acquired from closely held Van Wagner generated $206 million in revenue last year, New York- based CBS Outdoor said.
CBS Outdoor shares, which have advanced 18 percent since the company’s initial public offering in March, were little changed at $33.04 on July 18.
CBS Outdoor raised $644 million in the IPO including the over-allotment and is converting into a real estate investment trust. Last month, CBS Corp. took the final step in the spinoff of the billboard company, with a plan to fully divest its 81 percent ownership.
Platinum Equity purchased the European segment of CBS Corp.'s (NYSE: CBS.A, CBS) billboard assets in 2013.