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