Lamar Advertising Acquires Assets of Verde Outdoor in UPREIT Transaction
Lamar Advertising (Nasdaq: LAMR) has completed a groundbreaking acquisition of Verde Outdoor through the first-ever UPREIT transaction in the billboard industry. The deal, closed on July 2, 2025, adds over 1,500 billboard faces and 80 digital displays across 10 states to Lamar's portfolio, strengthening its presence in the Midwest, Southeast, and Mid-Atlantic regions.
In this innovative transaction structure, Verde contributed its assets to Lamar Advertising Limited Partnership in exchange for common units that track Lamar's Class A common stock value. Verde's owners will receive cash distributions equal to Lamar's common stock dividends, with units being convertible to cash or shares. The UPREIT structure enables tax-deferred acquisitions, setting a potential template for future industry deals.
Lamar Advertising (Nasdaq: LAMR) ha completato un'acquisizione rivoluzionaria di Verde Outdoor attraverso la prima operazione UPREIT nella storia del settore dei cartelloni pubblicitari. L'accordo, finalizzato il 2 luglio 2025, aggiunge oltre 1.500 facciate di cartelloni e 80 display digitali distribuiti in 10 stati al portafoglio di Lamar, rafforzando la sua presenza nel Midwest, nel Sud-Est e nella regione del Mid-Atlantic.
In questa struttura innovativa, Verde ha conferito i suoi asset alla Lamar Advertising Limited Partnership in cambio di unità comuni che seguono il valore delle azioni ordinarie di Classe A di Lamar. I proprietari di Verde riceveranno distribuzioni in contanti equivalenti ai dividendi delle azioni ordinarie di Lamar, con la possibilità di convertire le unità in denaro o azioni. La struttura UPREIT consente acquisizioni con differimento fiscale, creando un modello potenziale per futuri accordi nel settore.
Lamar Advertising (Nasdaq: LAMR) ha completado una adquisición innovadora de Verde Outdoor a través de la primera transacción UPREIT en la industria de vallas publicitarias. El acuerdo, cerrado el 2 de julio de 2025, añade más de 1,500 caras de vallas publicitarias y 80 pantallas digitales en 10 estados al portafolio de Lamar, fortaleciendo su presencia en el Medio Oeste, Sureste y la región del Atlántico Medio.
En esta estructura de transacción innovadora, Verde aportó sus activos a Lamar Advertising Limited Partnership a cambio de unidades comunes que reflejan el valor de las acciones ordinarias Clase A de Lamar. Los propietarios de Verde recibirán distribuciones en efectivo equivalentes a los dividendos de las acciones ordinarias de Lamar, con unidades convertibles en efectivo o acciones. La estructura UPREIT permite adquisiciones con diferimiento fiscal, estableciendo un posible modelo para futuros acuerdos en la industria.
Lamar Advertising (나스닥: LAMR)는 광고판 업계 최초의 UPREIT 거래를 통해 Verde Outdoor를 획기적으로 인수했습니다. 2025년 7월 2일 마감된 이번 거래는 10개 주에 걸쳐 1,500개 이상의 광고판과 80개의 디지털 디스플레이를 Lamar의 포트폴리오에 추가하여 중서부, 남동부, 미드애틀랜틱 지역에서의 입지를 강화했습니다.
이 혁신적인 거래 구조에서 Verde는 자산을 Lamar Advertising Limited Partnership에 출자하고, 이에 대해 Lamar의 클래스 A 보통주 가치에 연동된 보통 유닛을 받았습니다. Verde 소유주는 Lamar 보통주 배당금과 동일한 현금 분배를 받으며, 유닛은 현금이나 주식으로 전환할 수 있습니다. UPREIT 구조는 세금 이연 인수를 가능하게 하여 향후 업계 거래의 잠재적 모델을 제시합니다.
Lamar Advertising (Nasdaq : LAMR) a réalisé une acquisition révolutionnaire de Verde Outdoor via la toute première transaction UPREIT dans le secteur des panneaux publicitaires. L'accord, finalisé le 2 juillet 2025, ajoute plus de 1 500 faces de panneaux et 80 affichages numériques répartis dans 10 états au portefeuille de Lamar, renforçant sa présence dans le Midwest, le Sud-Est et la région du Mid-Atlantic.
Dans cette structure de transaction innovante, Verde a apporté ses actifs à Lamar Advertising Limited Partnership en échange d’unités ordinaires liées à la valeur des actions ordinaires de classe A de Lamar. Les propriétaires de Verde recevront des distributions en espèces équivalentes aux dividendes des actions ordinaires de Lamar, avec la possibilité de convertir ces unités en espèces ou en actions. La structure UPREIT permet des acquisitions avec report d’impôt, établissant un modèle potentiel pour de futures opérations dans le secteur.
Lamar Advertising (Nasdaq: LAMR) hat eine bahnbrechende Übernahme von Verde Outdoor durch die erste UPREIT-Transaktion in der Billboard-Branche abgeschlossen. Der Deal, der am 2. Juli 2025 abgeschlossen wurde, fügt Lamar über 1.500 Werbeflächen und 80 digitale Displays in 10 Bundesstaaten hinzu und stärkt somit die Präsenz im Mittleren Westen, Südosten und der Mid-Atlantic-Region.
In dieser innovativen Transaktionsstruktur brachte Verde seine Vermögenswerte in die Lamar Advertising Limited Partnership ein und erhielt dafür Stammanteile, die den Wert der Klasse-A-Stammaktien von Lamar abbilden. Die Eigentümer von Verde erhalten Barausschüttungen, die den Dividenden der Lamar-Stammaktien entsprechen, wobei die Anteile in Bargeld oder Aktien umgewandelt werden können. Die UPREIT-Struktur ermöglicht steuerlich aufgeschobene Übernahmen und setzt einen möglichen Standard für zukünftige Branchen-Deals.
- Acquisition adds over 1,500 billboard faces and 80 digital displays across 10 states
- Strategic expansion in key markets across Midwest, Southeast and Mid-Atlantic regions
- Tax-efficient UPREIT structure creates template for future acquisitions
- Verde owners receive equivalent dividend distributions through partnership units
- Potential dilution risk from convertible partnership units
- Integration costs and challenges of managing expanded portfolio across multiple regions
Insights
Lamar's acquisition of Verde Outdoor via UPREIT structure expands portfolio by 1,500 billboards while offering tax advantages for future growth.
Lamar Advertising's acquisition of Verde Outdoor marks a strategic expansion of its billboard inventory, adding over 1,500 billboard faces across 10 states, including 80 digital displays in key markets throughout the Midwest, Southeast, and Mid-Atlantic regions. What makes this transaction particularly noteworthy is its structure as the first-ever UPREIT transaction in the billboard industry.
The UPREIT (Umbrella Partnership Real Estate Investment Trust) structure provides significant tax advantages for the sellers. Verde's owners received common units of Lamar Advertising Limited Partnership rather than cash or stock, allowing them to defer capital gains taxes that would typically be triggered in a traditional sale. These partnership units track the value of Lamar's Class A common stock and provide distributions equal to Lamar's common stock dividends, while being convertible to cash or shares later.
This transaction template could become increasingly valuable for Lamar's acquisition strategy. By offering tax-deferred partnership units, Lamar creates an attractive proposition for billboard owners looking to diversify holdings without immediate tax consequences. This mechanism potentially accelerates Lamar's consolidation capabilities in a fragmented outdoor advertising market, particularly appealing to owners of privately-held billboard assets seeking liquidity or diversification.
Verde Outdoor's rapid growth since its 2021 founding through both acquisitions and organic development demonstrates the quality of assets Lamar is acquiring. The involvement of Ernest C. Garcia II, a notable entrepreneur, adds credibility to Verde's portfolio quality. For Lamar, the deal not only expands market presence but establishes a blueprint for future tax-efficient acquisitions that could fuel more aggressive growth in the outdoor advertising sector.
BATON ROUGE, La., July 07, 2025 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR) (“Lamar” or the “Company”), a leading owner and operator of outdoor advertising assets, announced today that it has acquired the assets of Verde Outdoor in the first-ever UPREIT transaction in the billboard industry.
The acquisition, which closed on July 2, brought more than 1,500 billboard faces, including 80 digital displays, across 10 states to Lamar’s portfolio. The acquisition expands Lamar’s presence in key markets in the Midwest, Southeast and Mid-Atlantic.
Verde Outdoor was launched in 2021 by Ernest C. Garcia II and partners with acquisitions in Sioux City, Charleston and Savannah. Verde expanded rapidly over the next four years through strategic acquisitions in Hudson Valley, New York and the Mid-Atlantic and through organic development.
In this transaction, Verde contributed its assets to Lamar Advertising Limited Partnership (“Lamar LP”), the operating partnership subsidiary of Lamar that holds the Company’s assets. In return, the owners of Verde received common units of Lamar LP, with each common unit of Lamar LP designed to track the value of a share of Lamar’s Class A common stock. Holders of the Lamar LP common units receive cash distributions on each common unit in an amount equal to the per share dividend paid on Lamar’s common stock. Common units of Lamar LP are convertible into cash or shares of Class A common stock of Lamar.
The transaction was enabled by Lamar’s organization as an UPREIT, or Umbrella Partnership Real Estate Investment Trust. This structure allows Lamar to issue partnership units of Lamar LP to billboard owners on a tax-deferred basis in connection with acquisitions.
“This deal represents a significant milestone for Lamar,” said Sean Reilly, Lamar’s Chief Executive Officer. “We’re thrilled to have Ernie and the other Verde owners as partners, and we expect this UPREIT structure to become a template for future acquisitions with owners who want to diversify their asset bases in a tax-efficient manner.”
“When the Reilly family approached me about an acquisition, they promised a compelling value for Verde Outdoor’s assets, an attractive and tax-efficient deal structure and a smooth closing process,” Garcia said. “They delivered on all fronts.”
Johnsen, Fretty & Co., LLC, acted as financial advisor to Verde, while Snell & Wilmer acted as legal advisor. Kean Miller LLP and Hogan Lovells US LLP acted as legal advisors to Lamar.
| Company Contact: | Buster Kantrow |
| (225) 926-1000 | |
| bkantrow@lamar.com |
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