Baton Rouge-based Lamar Advertising Company has completed a $418.5 million deal that adds some 8,500 billboards across five U.S. markets to its portfolio.
Lamar announced the acquisition of Fairway Outdoor Advertising’s billboard operations from GTCR today. The deal means Lamar will now be operating in the following metro areas: Greenville/Spartanburg, South Carolina; Raleigh-Durham and Greensboro-Winston-Salem, North Carolina; Athens, Georgia; and La Crosse, Wisconsin.
“We are excited to add these high-quality, REIT-eligible assets in attractive markets to our portfolio,” says Lamar CEO Sean Reilly in a prepared statement. “This accretive acquisition, in addition to our anticipated over 5% organic sales growth in Q4, gives us tremendous momentum as we enter 2019.”
Lamar anticipates that the acquisition will contribute approximately $70.0 million in revenue in 2019. According to Business Report’s 2018 listing of Louisiana’s top 20 public companies, Lamar is No. 4, with revenue of $1.5 billion in 2017, a 2.7% increase from the year previous.
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 and Locke Lord acted as legal advisors to Lamar.
Also today, Lamar announced that it expects to make regular quarterly distributions of $3.84 per share to stockholders in 2019, a 5.2% increase over aggregate distributions paid or to be paid in 2018. The distributions are subject to the approval of the company’s board of directors.