Three New Deals Signal Productive Year for M&A

Evidence is amassing that 2004 is going to produce a bumper crop of mergers and acquisitions.

In recent weeks, dmg world media has continued its brisk acquisition pace by picking up the Canadian Intl. Farm Equipment Show, the country's fifth-largest show. In the exhibit transportation arena, Atlas World has linked up with logistics provider Bekins Distribution Service. And general contractor Champion Exposition Services has tied the knot with event-marketer The Colonnade Group.

Even before that trio of deals last month, the year was shaping up to be an active one. Jordan, Edmiston Group Inc., a New York media company M&A specialist, has brokered seven agreements so far this year. The flurry of activity comes after a fairly dormant 2003. According to JEGI figures, 18 tradeshow-related deals with a total value of $106 million were reported last year, compared with 33 deals worth $155 million in 2002. With three deals in 2003, dmg was last year's busiest tradeshow acquirer.

Paul Allingham, an executive vice president with dmg, said the farm tradeshow will help beef up dmg's fledgling agriculture sector, which includes the Northlands Farm & Ranch Show, held in Edmonton, Alberta, March 24-27; Farm World Expo, held Aug. 3-5 in Terra Haute, Ind.; and Farm World, a weekly newspaper.

While agriculture isn't one of the fastest-growing industries, it is a stable one, Allingham said. The Canadian Intl. Farm Equipment Show ranked No. 5 on Tradeshow Week's 2003 Canadian 50, drawing 43,500 attendees and 620 exhibitors and spanning 257,000 net square feet.

The show nearly fills five of the six exhibit halls at Toronto's Intl. Centre each February. "I think there's some potential. There's a portion of Hall 5 that it didn't fill. We hope to grow it to fill that hall completely," Allingham said.

The show, founded by the late Dawn Morris 19 years ago, was purchased from the trust of Dawn Morris Productions for an undisclosed price. Show managers Jane Hickman and Judy Johnston and their team will join dmg and continue overseeing the event. Dmg's Chris Seeney has been named to head the agricultural sector.

Allingham said he sees some synergies between the Toronto and Edmonton shows. In addition, dmg's two Canadian farm shows could benefit from a cooperative agreement recently signed by dmg and the Assn. of Equipment Manufacturers, which is headed by Dennis Slater, chairman of the Intl. Assn. for Exhibition Management.

Champion's acquisition of The Colonnade Group gives the service contractor a quick pass into the sporting event world. The Colonnade Group, based in Birmingham, Ala., produces the Kentucky Derby and Breeders' Cup, among other sporting events.

The acquisition of Bekins Distribution Services, meanwhile, allows Evansville, Ind.-based transportation company Atlas World Group to expand into logistics. Under terms of the acquisition, Bekins will continue to operate in St. Louis under the name of BDS Worldwide. In addition, President Dan Kelly and the existing staff will stay on.

BDS will become part of Atlas's specialized transportation group, which moves goods for tradeshows and exhibits.