oOh!media has entered into an agreement to acquire the out-of-home printing and production company Cactus Imaging as part of its strategy to strengthen its core business.
Cactus specialises in the digital printing of grand, large and small format advertising across the outdoor industry.
The acquisition will be immediately EPS accretive, and fully funded by cash.
oOh! chief executive officer Brendon Cook said classic print-based outdoor advertising was a substantial and integral part of the sector and this acquisition would streamline production times and reduce costs.
“While digitisation of out-of-home provides new opportunities to engage with audiences like never before, classic out-of-home plays a critical role in brand building for advertisers, both independently and in partnership with digital assets,” Cook said.
“Of the 73,000 faces in the Australian out-of-home industry in 2015, 90.4% were in the classic print form, requiring innovative printing businesses 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.”
Cook said Cactus will be maintained as a stand-alone business with its existing management team and will continue to deliver innovative services to its extensive and long-standing customer base.