View all news

AutoNation, Inc. Sells Its Outdoor Advertising Business To Infinity Outdoor, Inc. For $104 Million

Nov. 09, 2000

FORT LAUDERDALE, Fla., Nov. 9 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today announced that it has completed the divestiture of its outdoor advertising business to Infinity Outdoor, Inc. of Phoenix, Arizona. In the transaction, Infinity Outdoor acquired all of the outstanding capital stock of Republic Media Companies Holding Co. in exchange for $104 million in cash. As part of the transaction, AutoNation also entered into a three-year, $15 million advertising agreement with Infinity Outdoor.

(Photo: http://www.newscom.com/cgi-bin/prnh/20001017/AUTONATIONLOGO)

The sale will result in a one-time, pre-tax gain of approximately $50 million for AutoNation in the fourth quarter, 2000.

Republic Media operates an outdoor advertising business with approximately 1,300 billboard faces in the state of Florida.

AutoNation's decision to sell Republic Media is consistent with its goal of focusing on its core automotive retail operations. Earlier this year, AutoNation also spun-off to its shareholders its automotive rental operations and divested of several non-core dealerships and real estate assets.

Commenting on the sale, AutoNation Chief Executive Officer Michael J. Jackson said, "AutoNation has made exceptional progress this year in achieving our goal of focusing on our core automotive retail business. The sale of Republic Media substantially completes our program of divesting non-core businesses and allows us to focus on further improving our automotive retail business. Proceeds from the divestitures, together with the substantial cash flow generated by our dealerships, have allowed us to reduce our debt and to buy back our stock."

"The Republic Media assets will be a great addition to the Florida markets we currently serve," said Wally Kelly, President and CEO of Infinity Outdoor, Inc. "This will create even more opportunities to package media for our customers."

Infinity Outdoor, Inc., is the largest outdoor advertising company in North America. It operates approximately 117,000 bulletin, poster, mall and transit advertising display faces and sports marketing services in 90 U.S., 13 Canadian and 44 Mexican top markets. Infinity Outdoor, Inc. is a wholly owned subsidiary of Infinity Broadcasting Corporation, (NYSE: INF), which operates over 1,127,000 additional billboard, bus and subway displays worldwide. Infinity Broadcasting also owns 187 U.S. radio stations -- the majority of which are in the nation's largest markets.

AutoNation, Inc., headquartered in Fort Lauderdale, Florida, is America's largest automotive retailer, on and off the web. AutoNation had 1999 revenue of more than $20 billion, employs approximately 32,000 people and owns and operates more than 400 automotive retail franchises in 17 states. The Company ranked #63 on the 2000 Fortune 500 and was also ranked by Fortune magazine as America's "Most Admired Automotive Retailer" in 2000. Additional information is available at www.autonation.com. SOURCE AutoNation, Inc.

CONTACT: Jim Donahue, AutoNation, 954-769-7208; or Tom Wisz,

Categories: Press Releases
View all news