Lamar Advertising Company said on Friday it has acquired AdSource, a U.S. billboard operator, in a transaction structured as a UPREIT deal valued at approximately $120 million.
The Up-C REIT structure allows Lamar to issue shares in exchange for AdSource’s assets while deferring capital gains taxes for AdSource’s owners. The deal expands Lamar’s national billboard footprint and diversifies its revenue base across outdoor advertising markets.
Terms of the agreement were not disclosed beyond the valuation. Lamar said the acquisition is expected to be immediately accretive to funds from operations, though it did not provide specific financial projections.
Lamar, one of the largest U.S. outdoor advertising companies, operates more than 170,000 digital and static billboards nationwide. AdSource’s portfolio includes approximately 10,000 billboards, primarily in the Midwest and Southeast.
The transaction is subject to regulatory approvals and is expected to close in the second half of 2025. Lamar did not disclose the names of AdSource’s owners or the exchange ratio for the share issuance.
The UPREIT structure has become a common method for real estate investment trusts to grow through acquisitions while preserving tax efficiency for sellers.
