oOh!media buys Cactus from OPUS
Outdoor advertiser oOh!media is buying wide-format printer Cactus Imaging from OPUS Print Group for $6 million in cash.
Cactus has a production base at Silverwater in Sydney where it specialises in large format outdoor posters and banners. Its equipment includes two HP XP 5100’s, the latest XP 5500, two 6-colour XP 2700s and a UV Turbo Jet, as well as a Fiab high frequency welder and a Miller hot air welder. Cactus also has sales offices in Sydney, Melbourne, Auckland and Cambodia. About 40 staff are expected to remain with the company.
ASX-listed oOh! will pay $6 million for Cactus and the deal will be fully funded with cash, according to a report in Fairfax Media.
“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,” said Brendan Cook, CEO, oOh! Media. “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.”
Cactus will remain a stand-alone business after the transaction.
Hong Kong-listed 1010 Printing Group, which owns 61.9 per cent of OPUS Print Group, said Cactus posted a full year profit of $2.1 million in 2015.
Late last month, oOh!media paid $11 million for an 85% stake in youth publisher Junkee Media as part of its digital and data strategy.
PricewaterhouseCoopers has predicted that the thriving out-of-home advertising sector will be worth more than $1 billion by 2020, with digital expected to make up almost half of the market.