Lamar Advertising's Strategic Acquisition of Verde Outdoor Assets
Lamar Advertising's Strategic Acquisition
Lamar Advertising Company (NASDAQ: LAMR), a premier operator in outdoor advertising, has recently made headlines with a significant acquisition. The Company announced that it has successfully acquired the assets of Verde Outdoor in a pioneering UPREIT transaction within the billboard sector. This strategic decision marks a new chapter for Lamar as it continues to expand its footprint across various markets.
Details of the Acquisition
The acquisition, which was finalized earlier this month, is poised to add over 1,500 billboard faces, including 80 digital displays, to Lamar's already extensive portfolio. The transaction will bolster Lamar's visibility and advertising capabilities in crucial markets spanning the Midwest, Southeast, and Mid-Atlantic regions.
About Verde Outdoor
Founded in 2021 by Ernest C. Garcia II and his team, Verde Outdoor has rapidly carved out a niche in the billboard industry. From its initial foray in cities like Sioux City and Charleston, Verde expanded through both strategic acquisitions and organic development, covering areas in Hudson Valley and the Mid-Atlantic. This growth trajectory made Verde Outdoor a prime acquisition target for Lamar.
Understanding the UPREIT Structure
This transaction was facilitated through Lamar's UPREIT structure, or Umbrella Partnership Real Estate Investment Trust, a model that provides a tax-efficient avenue for acquiring additional assets. This structure enables Lamar to offer partnership units of its subsidiary, Lamar Advertising Limited Partnership (Lamar LP), to billboard proprietors, allowing for smoother transactions.
Comments from Leadership
Sean Reilly, the CEO of Lamar, expressed enthusiastic sentiments over the acquisition. He highlighted the collaborative spirit with Verde’s ownership, stating, "This deal represents a significant milestone for Lamar. We are excited to welcome Ernie and the Verde team as partners, and we envision this UPREIT framework serving as a standard for future acquisitions." Ernest C. Garcia II also shared his positive experience, noting the compelling values presented during the acquisition discussion, which led to a successful and efficient closing process.
Role of Financial Advisors
In this merger of capabilities, Johnsen, Fretty & Co., LLC served as the financial advisor for Verde, while Snell & Wilmer contributed as legal counsel. Meanwhile, Lamar was advised legally by Kean Miller LLP and Hogan Lovells US LLP during these transaction proceedings.
Company Contact Information
For inquiries, you can reach out to:
Buster Kantrow
(225) 926-1000
bkantrow@lamar.com
Frequently Asked Questions
What is the significance of Lamar's acquisition of Verde Outdoor?
The acquisition significantly enhances Lamar's advertising portfolio, adding over 1,500 billboard faces and an array of digital displays across various markets.
How does the UPREIT structure work?
The UPREIT structure allows Lamar to acquire assets through the issuance of partnership units to billboard owners, promoting tax-efficient transactions.
Who is leading Lamar Advertising Company?
Sean Reilly is the Chief Executive Officer of Lamar Advertising Company, overseeing the company's strategic direction and operations.
When was Verde Outdoor established?
Verde Outdoor was established in 2021 and quickly expanded its presence in the billboard sector through strategic acquisitions.
Who advised Verde Outdoor in this acquisition?
Verde Outdoor was advised financially by Johnsen, Fretty & Co., LLC and received legal advice from Snell & Wilmer during the acquisition process.
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