• by Joe Mandese , September 20, 2004

Two smaller, regional outdoor media companies are merging in an out-of-home media marketplace that increasingly is dominated by a handful of major players. Lamar Advertising Co., a publicly traded company based in Baton Rouge, LA, is Monday said it agreed to acquire all of the outstanding stock of Eugene, OR-based Obie Media Corp. for about $43 million in a stock-for-stock deal. About $23 million of the deal value is related to Obie Media debts.

Lamar operates 152 outdoor advertising companies in 43 states, as well as numerous, logo advertising businesses in 20 states and the province of Ontario, Canada. It also operates 34 transit advertising franchises in 12 states.

Obie operates transit posters, billboards, wallscapes, transit shelters and bus benches throughout the United States and Canada.

The merger, which has been approved by the board of directors of both companies, is subject to the approval of the stockholders of Obie, but is expected to close in early 2005.