Townsquare Media Sells-Off Money Losing NAME

Townsquare Media, Inc. announced Thursday that it has completed the sale of North American Midway Entertainment LLC to North American Fairs, LLC, an entity owned by Danny Huston, for $23.5 million plus a 15% residual interest in any future proceeds of a sale of NAME in the next ten years.

Townsquare purchased NAME in 2015 for $75.5 million.

NAME is North America's largest mobile amusement company, entertaining approximately 16 million people on an annual basis as the owner and operator of amusement attractions at approximately 150 fairs per year across the United States and Canada.  NAME has been a subsidiary of the Company since it was acquired in 2015.  In 2017, the Company announced that it was initiating a strategic review of its Entertainment segment, which included NAME.

Under the terms of the purchase agreement, North American Fairs, LLC will acquire all of the issued and outstanding membership interests of NAME's parent company, Heartland Group, LLC, from the Company for total cash consideration of $23.5 million. In addition, Townsquare will have the right to receive 15% of any sale proceeds if NAME is sold, in whole or in part, in the next ten years.  The Company expects to hold the net cash proceeds from the sale on its balance sheet, pending reinvestment.

For the year ended December 31, 2017, NAME generated net revenue, net loss, Adjusted EBITDA and capital expenditures of $92.2 million, $33.7 million, $7.3 million and $6.3 million, respectively. Pro forma for the divestiture of NAME, Townsquare's 2017 net revenue, net income, Adjusted EBITDA and capital expenditures were $415.2 million,  $23.4 million, $89.9 million and $16.5 million, respectively.