Exhibition World Issue 2 — 2019 - Page 11

Dealmakers Steve Monnington Managing Director Mayfield Media Strategies Dealmakers he record pace set last year for the number of transactions continues into 2019 with 18 transactions in the two months to January 2019. One of my predictions for this year was the continuing sale of non-core brands by the larger organisers and, following its acquisition of UBM, Informa has started divesting some of its non- exhibition assets. The Life Sciences Media Brands Portfolio was part of the UBM business and has been sold to MJH Associates, a leading US-based medical communications company, for just over US$100m. The brands cover three core vertical markets – Healthcare, Pharma and Animal Health – and were included within the Other Marketing Services division, which was declining, and at 12% had lower operating margins than the Group average of 31.5%. There were also non-core disposals by Clarion which, having acquired Pennwell Corporation for around £300m (US$4397m) last year, has 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 represents their largest deal so far and are in sectors well represented by some of the previous acquisitions. Clarion also made further disposals with the sale of their German mechanical engineering exhibitions FMB and FMB-Süd to EasyFairs which will fit alongside their existing portfolio of industrial trade shows: Solids, Maintenance, Pumps & Valves, Empack and Logistics. FMB was originally acquired by Clarion in 2010 as part of a larger business. There was also activity in venue management where two of the big giants, AEG and SMG, announced their intention to merge to create a 50/50 company to be known as ASM global, resulting in a global portfolio of 310 arenas, convention centres and performing arts venues. w w w.exhibitionworld.co.uk On a smaller scale, GL events added to their venue portfolio with the acquisition of 60% of the shares of Johannesburg Expo Centre 2002 (JEC). JEC owns the Johannesburg exhibition centre which was originally acquired by Montgomery Worldwide in 2004, which will continue to hold the other 40%. Transactions this period: Buyer Business Country Sector MJH Associates Informa Life Science media brands USA Life Science Endeavour Business Media Pennwell non-core brands & events USA Energy, Water Diversified Communications Intersolar, ees, Power2Drive USA Energy CyberRisk Alliance Infosec World Conference & Expo USA CyberSecurity Haymarket Media NACE USA Healthcare TMA TabExpo & magazines USA/Europe Tobacco AEG & SMG Venue Management merger Global Immediate Media Marine & Coastal Engineering Expo UK Marine Pico Group FUTR Group UK/Singapore Retail Insights GL events CIEC Union China Home GL events Johannesburg Expo Centre South Africa Venues Specialised Exhibitions Montgomery FM Expo South Africa Facilities Mngt EasyFairs FMB Germany Engineering Reed Exhibitions India Big7 India Gifts, Houseware Messe Frankfurt Gartex India Textiles Messe Dusseldorf FAMDENT India Healthcare Seven Events IMOS Indonesia Motorcycles Venues Issue 2 2019 11