Deal Making Goes On
M|C Communications, a marine association and Penton are involved
By Margo McCall -- Tradeshow Week, 8/2/2004
The torrid pace of buying and selling makes it likely that this will be a busy summer for investment bankers. In the latest round of deals, a marine association scooped up a private boat show producer, Penton Media made its first acquisition in years and a private-equity firm reportedly snagged M|C Communications.
Investment bankers are predicting a lively year for mergers and acquisitions. So far, the first six months of 2004 are neck and neck with 2003 in terms of the number of deals, but valuations are up by 30 percent, according to Jordan Edmiston Group Inc.
The increased valuations are underscored by the $400 million that Boston-based Bain Capital is reportedly paying for M|C Communications, representing 12 times its operating cash flow. The acquisition, reported by The Deal in early July, is expected to close this month. Neither party involved would confirm the report.
However, the Boston-based M|C Communications, producer of the fast-growing Pri-Med Conference & Exhibition, has been an acquisition target for some time. "It could have happened anytime, because it's such a good business," said Richard Mead, managing director of JEGI.
Since its 1995 founding by Reed Elsevier veteran John Mooney, M|C Communications has grown to include 89 continuing education conferences. Pri-Med events are held in the East, Midwest, South, West and Mid-Atlantic regions, and in 2005 a sixth Pri-Med will be launched in Houston. M|C also manages national conferences for the American Institute of Architects.
Private-equity firms aren't the only buyers on the lookout for tradeshows. The Natl. Marine Manufacturers Assn. last month took advantage of a private show manager's desire to retire and bought General Sports Shows for an undisclosed amount. The acquisition adds four consumer boat shows — the Minneapolis Boat Show, the Northwest Sportshow, the Kansas City Sportshow and the Des Moines Sportshow — to the association's portfolio of 18 consumer and trade events.
"There are a lot of opportunities. We're on the acquisition path," said Ben Wold, an executive vice president with the association.
Wold said the purchase gives the Chicago-based association a central core of shows, creating greater participation opportunities for exhibitors. Boat dealers typically sell up to half their inventory through boat shows. "General Sports Shows is an acknowledged leader. The four shows they produce have always been top shows. They are well attended with a broad spectrum of products. It's a natural for us," he said.
Typically, it's for-profit show organizers that are interested in buying association shows. But Wold said members of the marine manufacturers group "want to control their destiny."
Two years ago, the association bought the Atlantic City Intl. Power Boat Show from the Montana Group, and two years before that, it picked up the Louisville Sport, Boat, RV & Vacation Show.
Penton Media, meanwhile, made its first acquisition since the 2001 purchase of the Wireless Developer Conference. The company's European division bought four magazines from Wilson Publications.
Service Management magazine will support the Service Management Europe exhibition set for Sept. 28–30 at the Natl. Exhibition Centre in Birmingham, England, and an online event called SM365.com.
The other three magazines — CRM, Customer Service News and Business and IT Support — will form the foundation for Penton's newly formed business customer group. CRM will support the like-named exhibition, next set for London's Olympia Hall Oct. 6–7.
