Canon Sold to Apprise Media

Former Primedia exec is winning bidder for company in VSS auction

By Margo McCall -- Tradeshow Week, 5/2/2005

A year after Primedia co-founder Charles McCurdy formed Apprise Media, he's succeeded in picking up one of the choicest tradeshow properties on the market: Canon Communications.

Apprise, backed by Spectrum Equity Investors, was the winning bidder in Veronis Suhler Stevenson's closely watched auction to sell the Los Angeles-based Canon, a producer of 15 tradeshows, 15 magazines and eight Web sites in the medical device and packaging, plastics and electronics industries.

Upon learning that his company was the winning bidder — reportedly for more than $200 million — the New York-based McCurdy quickly flew to Los Angeles to meet the management team, which will be retained.

"I think they're happy to be through the sales process," said McCurdy. "It's a terrific team, both on the tradeshow and management sides."

McCurdy — whose company in January also closed on the purchase of Dallas-based Beckett Publications, a producer of guides for sports collectibles — said Canon's 10-year track record, in addition to growth prospects for the $200 billion medical-device industry, made the firm a desirable acquisition.

"It's an attractive business that drew a lot of attention," said McCurdy, who described the auction as "competitive, well-conducted and well-attended."

Canon, owned by VS&A Communications Partners since 1996, had been on the auction block since January. Although VSS declined to be specific about the process, VSS Managing Director Hal Greenberg said it generated "very strong interest."

Apprise's willingness to retain existing management, including President and CEO William Cobert, a stakeholder, was a factor in its bid being selected. "Apprise and Spectrum put forth a fine package that worked well for a lot of different interests," Greenberg said.

VSS tried to keep the process as abbreviated as possible, in deference to company management and employees. "We took the position early on that, come the final bid date, we wanted companies to put forth their best proposal," Greenberg said.

Former Advanstar Communications CEO Bob Krakoff said his company, Blantyre Partners, looked at Canon. Although he acknowledged Canon's leading position in the medical-device industry, Krakoff said, "I think it's a pretty full price they paid."

Krakoff, backed at the time by Citibank Venture Capital, was one of the bidders for Thomson Media last year, as was McCurdy. Krakoff said Blantyre, backed by the Blackstone Group, will continue to evaluate whatever business-to-business properties become available. "We pay attention to everything that's out there," he said.

Adam Gross, vice president of marketing at investment banking firm Jordan Edmiston Group Inc., said Canon's hot market sector, as well as the company's size, made for many interested parties. "The whole medical industry is a very hot area. For McCurdy and his team, it's the foundation of a platform. They now have two acquisitions under their belt, and we assume they're looking for more."

VSS-owned Hanley Wood is also on the auction block. After that sale, the private-equity firm's only tradeshow holdings will be Access Intelligence and a stake in Ascend Media. But that doesn't mean VSS has lost interest in tradeshows. "We spent a lot of time and money on Hanley Wood and Canon. We hope to do the same thing with Ascend and Access Intelligence," Greenberg said.

Even after the acquisition of Canon and Beckett, McCurdy said Apprise still has enough remaining from Spectrum's $200 million backing to make more acquisitions.

McCurdy said there is potential for Canon to expand tradeshows, magazines and interactive products within its existing markets, as well as branch out into related markets. He also sees a chance for international expansion, since Canon has established shows in Europe and recently launched a medical device tradeshow in China.

Canon's two biggest shows are the East and West Coast versions of Medical Design & Manufacturing, collocated with several affiliated events. The West Coast MD&M in 2004 drew 1,937 exhibitors and 34,499 attendees during its Jan. 10–12 run at the Anaheim Convention Center. Its 323,340 net sq. ft. showfloor earned it a No. 58 ranking on the 2005 Tradeshow Week 200, down from No. 43 in the previous year.