Bus Media, an advertising company which counts Denis O'Brien among its shareholders, has been bought out by the US firm Titan Outdoor.
Mr O'Brien's Communicorp Ltd owns a major stake in the shares in Bus Media Ireland Ltd.
The company offers clients advertising space on private bus fleets throughout the Republic. By using the buses it claims to have access to more than 75 towns and cities.
Apart from Communicorp Ltd, the other shareholders in Bus Media are James Barry, Finbar Costello and Stephen Dunn, all of whom have worked in the outdoor advertising market for some years. It is understood Communicorp did not see the business as core to its radio interests. Bus Media Ireland was set up in 2002 and so far it has met with difficulties in building up strong sales.
The last accounts filed with the Companies Office are only for December 31st, 2004. They show turnover of just €1.1 million and a small operating profit.
The biggest constraint on the company has been the lack of competition on bus routes, which keeps private bus companies off many Dublin bus routes. The Government however is considering allocating routes in the future under a public tendering system.
The acquisition by Titan gives it a major foothold in the outdoor advertising market in the Republic. The company already has the contract for CIÉ's fleet of buses and trains, and its station hoardings. The outdoor market in total is worth €120 million.
Bill Apfelbaum, chairman of Titan Outdoor, who has worked with CIÉ before, said the decision to acquire Bus Media "filled in some holes" for the company in Ireland. He said Titan could now offer advertiser's access to private buses and coaches throughout Ireland, aswell as CIÉ sites. It is not clear whether the Competition Authority will impose conditions on the sale.
Mr Apfelbaum is a well known advertising figure in the US. He heads up his own foudnation known as the Apfelbaum Family Foundation which donates funds to various charitable organisations.
The outdoor advertising is growing as firms try to target transient consumers. A new company called Fourth Edition has entered the market in recent weeks. A former Microsoft executive, Ann Riordan, and several other Irish entrepreneurs have set up this company.
Ms Riordan, formerly country manager for Microsoft Ireland, Eddie Kerr, co-founder of directory enquiries group Conduit, and Martin Barry, one of the founders of Bus Media advertising group, have come together to challenge Clear Channel, JC Decaux and Viacom for the a slice of the outdoor market.
The latest deal puts Titan in poll position to increase its share beyond its competitors. It has Irish sales of about €30 million annually at present, said Mr Apfelbaum. It does not own all the major transit contracts however. Clear Channel holds the contract for advertisements on Dublin bus shelters.
