Daily News: January 22, 2015

Newstone Provides Mezzanine Financing for GTCR, Adams Buy

GTCR partnered with Adams Outdoor Advertising to acquire Fairway Media Group from ACON Investments and MidOcean Partners. Newstone Capital Partners provided mezzanine debt financing in connection with the transaction.

GTCR’s investment in Fairway was funded from GTCR Fund XI, a private equity fund raised in 2014 with $3.85 billion of limited partner equity capital commitments. Deutsche Bank Securities served as M&A advisor to GTCR, Stephen McNeely of Tantara Capital Partners served as an industry advisor, and Kirkland & Ellis served as legal counsel to GTCR. Adams Outdoor will assume a minority ownership stake in Fairway. Moelis & Company served as financial advisor to Fairway, and Hogan Lovells US served as its legal advisor.

The investment in Fairway illustrates GTCR’s focus on partnering with outstanding management teams to acquire and grow market-leading companies. Since 1983, Adams Outdoor has been a preeminent provider of outdoor advertising solutions and has reinvented outdoor into the advertising medium of choice for its clients. GTCR is partnering with Adams Outdoor, Adams Outdoor CEO Kevin Gleason, Adams Outdoor CFO Abe Levine and existing Fairway management to enhance Fairway’s strong customer relationships and further expand its outdoor advertising offerings.

“We are thrilled to have the opportunity to partner with Adams Outdoor in this transaction,” said David Donnini, managing director at GTCR. “Kevin Gleason and Abe Levine are proven veterans of the outdoor advertising industry, and we look forward to working with them to continue building a leading outdoor advertising franchise at Fairway.”

“Fairway is a great company with strong market presence and high quality assets in attractive, fast-growing economies,” said Kevin Gleason, CEO of Adams Outdoor. “I am excited about the opportunity to work with GTCR to build on the success that Fairway has achieved to date, and to continue to serve its customers, employees and communities.”

“Kevin and Abe have an exceptional track record in operating and managing outdoor advertising companies, and this transaction demonstrates GTCR’s commitment to finding creative ways to partner with leading management teams,” said Craig Bondy, managing director at GTCR. “Fairway is a unique asset within the outdoor advertising industry, and we look forward to supporting the growth opportunities available through acquisitions and internal investments.”

GTCR is a private equity firm.

Fairway Media Group is a privately held outdoor advertising company.