In the second major acquisition in the outdoor advertising world in the past five days, No. 3 outdoor company Lamar Advertising Co., Baton Rouge, La., agreed to acquire the outdoor business of Chancellor Media Corp., Dallas, which ranks No. 5 in revenue. In the stock and cash deal worth about $1.6 billion, Lamar will pay $700 million in cash and issue common stock valued at approximately $900 million to Chancellor. If the deal is approved by the U.S. Department of Justice, Lamar will leapfrog Clear Channel Communications and take the No. 2 spot. Lamar in 1998 had U.S. gross revenue of $325 million and Chancellor had $236 million, according to BT Alex. Brown. The deal allows Chancellor to pay down debt and focus solely on its radio business.
Copyright June 1999, Crain Communications Inc.