Exhibition News April 2019 - Page 10

M&A The Dealmaker Steve Monnington of Mayfield Media Strategies runs the rule over the latest global exhibition deals T he frenetic acquisition activity that resulted in a record number of deals in 2018 continues, so we have a double- sized column this month. In April 2018 Clarion acquired Pennwell Corporation for around £300m and less than a year later they have sold more than 20 non-core media brands and related events in oil and gas, industrial technology, dentistry and water to Endeavour Business Media. Included in the sale is the Oil and Gas Journal, which was the very first magazine launched by Pennwell more than 100 years ago. Endeavour is a publisher created by former SouthComm Media CEO Chris Ferrell and backed by private equity firm Resolute Capital Partners which, in just over one year, has made nine acquisitions. The Clarion assets represent its largest deal so far and are in sectors well represented by some of the previous acquisitions. Clarion also made further non-core disposals with the sale of its German mechanical engineering exhibitions FMB and FMB-Süd to Easyfairs which will fit alongside that company’s existing portfolio of industrial trade shows: Solids, Maintenance, Pumps & Valves, Empack and Logistics. FMB was originally acquired by Clarion in 2010 as part of the acquisition 10 — April of Survey, which included the ZOW furniture production and interior design fair. In October 2018, GL events announced a Rights Issue which raised €106m from its existing shareholders primarily to fund acquisitions in China and Japan. Now it has created a joint venture with the state-owned China Council for Promotion of International Trade (CCPIT2) by acquiring 55 per cent of CIEC Union, organiser of six exhibitions in wallpaper, curtains, home décor and building materials. The portfolio, which also includes ISH China, which is jointly organised with Messe Frankfurt and generates revenue of €40m, represents a clever and significant move into mainstream exhibitions in China for GL, which is better known for its venue management and exhibition contracting services. GL was also busy in South Africa, adding to its venue portfolio with the acquisition of 60 per cent of the shares of Johannesburg Expo Centre 2002 (JEC). JEC owns the Johannesburg exhibition centre, which was originally acquired by Montgomery Worldwide in 2004 and which will continue to hold 40 per cent as JV partner. GL already generates revenues in excess of €15m in South Africa. Reed has started 2019 in style with the acquisitions of Mack Brooks and Shanghai Forever and has completed its hat-trick by acquiring India BIG7, India’s largest B2B exhibition for gifts, stationary, houseware and home décor from Introduction Trade Shows. Big7 slots into Reed’s portfolio of gift shows in Germany, Japan, China and Australia. Messe Frankfurt continues its investment in the textile sector. Following its acquisition of The Clean Show in the USA (textile care) at the end of 2018, dedicated to textile care it has tied up an alliance in India with Mex Exhibitions, organiser of Gartex India, to put Gartex together with its own Texprocess India. The combined event will be part of Frankfurt’s umbrella Techtextil show in Mumbai as well as staging its own joint event in New Delhi. A third deal in India this month sees Messe Dusseldorf India acquire FAMDENT, one of India’s leading trade events for dental medicine. The business has attracted the interest of several international organisers over the years including UBM in 2011, when an acquisition press announcement was prematurely released. In Jakarta Seven Events, the joint venture between local organiser PT Amara and Comexposium, has acquired IMOS, Indonesia’s leading motorcycle show. In July 2017 Comexposium acquired 50 per cent of Seven Events which brought it GIIAS, the main auto show and Indonesia’s largest trade exhibition. Singapore-based Pico Group has acquired a significant stake