Quadrant Private Equity is gearing up to sell QMS Media, the outdoor advertising company it has owned for the past 6 years. Macquarie Capital’s TMT team is advising on the deal, with legal support from Gilbert + Tobin.
The private equity firm took full control of QMS Media in 2020, successfully buying out all shareholders in a $420 million all-cash deal.
QMS Media holds outdoor advertising contracts throughout Sydney, the Gold Coast and Canberra Airport. The business has also expanded into New Zealand thanks to its acquisition of MediaWorks and has thus been able to secure contracts like its $25 million deal with Auckland’s transport department.
The potential sale of QMS Media signifies a shift of dynamics in Australia’s outdoor advertising sector, representing both the choices facing well-capitalised media companies and the growing appeal of high-traffic ad spaces.
The move reinforces how traditional media outlets must balance expansion in outdoor advertising with an enhanced focus on digital platforms, thus influencing where major media companies allocate their capital in an ever evolving media landscape.
Rumours of Nine Entertainment being potentially interested in acquiring QMS Media are whirling. Nine is financially equipped for the sale following its own sale of Domain Holdings for approximately $1.4 billion. Although Nine is predominantly focused on its digital assets, the acquisition of QMS has not been ruled out.
Nine executives had previously attempted to acquire QMS although the deal did not proceed. Following a slew of leadership changes at Nine, including a new chairman and CEO, the entertainment company has shifted focus to offloading its talkback radio networks, meaning any future major purchases would require strategic purpose.
Ocean Outdoor, a London-based outdoor advertising firm is reportedly considering a bid. The company operates digital billboards in high-traffic urban locations across the UK and collaborated with the Tokyo 2020 Olympics.
Quadrant and Macquarie have also engaged other financial investors known to have an interest in the sector.
QMS Media recently refinanced $600 million in debt, reporting $355 million in revenue and $158 million in annual earning, highlighting its competitive position in the market.
B&T reached out to QMS and Nine. Both have declined to comment on the matter.
