Opus offloads outdoor division to oOh!media

oOh!media is set to acquire Opus Group’s outdoor division Cactus Imaging in a deal worth a reported $6m.

The deal comes as Opus reveals it is exiting the outdoor media business to focus on its printing arm, which is now the group’s sole business.  

Cactus provides grand format and large format printing for outdoor advertising across Australia.

Majority shareholder, Hong Kong’s 1010 Printing Group has filed documents regarding the sale on the Stock Exchange of Hong Kong, stating that Cactus recorded a full-year profit of $2.1m in calendar 2015.

oOh!, which recently acquired digital publisher Junkee Media in a deal worth $11m says the takeover of Cactus will boost its capabilities in classic print.

oOh! CEO Brendon Cook says, “Of the 73,000 faces in the Australian out of home industry in 2015, 90.4 per cent were in the classic print form, requiring innovative printing business to deliver quality campaigns.

“This acquisition will allow oOh! to deliver supply chain efficiencies for the delivery of classic print outdoor advertising across its leading metropolitan, regional and retail Out Of Home networks, to support Cactus’ continued innovation, and drive advertiser return on investment.” 

oOh! says the business will remain stand-alone and will keep its existing management team. The acquisition is expected to be earnings-per-share accretive immediately.

In March Opus sold its Singapore arm COS Printers to 1010 Printing Group for $19.3m. At the time Opus said the offload would relieve the company from the ‘distraction’ of the Singapore division, and enable the group to focus its efforts in Australia and NZ.

Around the same period Opus CEO Cliff Brigstocke announced his departure from the group, taking up the chief executive role at Bluestar and was replaced by Opus executive chairman Richard Celarc.

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