McCurdy Stepping In to Replace Cobert At Canon

Company buyer takes helm as longtime CEO explores new options

By Margo McCall -- Tradeshow Week, 2/20/2006

William Cobert, Canon Communications' third original hire, is leaving the tradeshow and magazine producer after 27 years, just eight months after it was bought by private-equity-backed Apprise Media.

Apprise Chairman and CEO Charles McCurdy, a former Primedia executive, has assumed the title of CEO. He will split his time between Apprise's New York headquarters and Canon's offices in Los Angeles.

"This was one of those situations where there was no real drama. It was a mutual decision," McCurdy said.

He added that taking on the added position of Canon CEO shouldn't represent a huge burden because the rest of the management team is highly experienced. "This is not a group that needs a lot of handholding. I will, of course, provide guidance and direction, but I'm very confident that the company's prospects are as good as ever," he said.

Cobert, a stakeholder, is considering his options, but plans to remain in the business. "Obviously, I've had a great run at Canon. The company has done well under my management and there are many opportunities out there," he said, adding, "You haven't seen the last of me."

When Cobert joined the year-old Canon in 1980 as an assistant editor, it produced one medical diagnostics magazine. It now produces 20 magazines, 20 tradeshows and several Web sites.

Among its largest shows are the collocated Medical Design & Manufacturing (MD&M) West, WestPack, PLASTEC West, Pacific Design & Manufacturing, and Electronics West, which collectively ranked No. 58 on the most recent Tradeshow Week 200, drawing nearly 35,000 attendees and 1,937 exhibitors to a 323,340 net square foot showfloor at the Anaheim Convention Center in 2004. The 2006 version, which featured a new Automation Technology Expo, drew nearly 45,000 buyers and 2,045 exhibitors to the Anaheim center Jan. 31–Feb. 2.

Canon's second-largest event, the collocated Medical Design & Manufacturing (MD&M) East, Atlantic Design & Manufacturing, EastPack, and PLASTEC East, ranked 95th on the TSW 200, with more than 25,000 attendees and a 241,990 net sq. ft. showfloor with 1,430 exhibitors. This year's version is scheduled June 6–8 at New York's Jacob K. Javits Convention Center.

Cobert said Canon was one of the first publishers to realize the value of owning tradeshows. At the time it launched MD&M in 1983, publishers mostly left tradeshow production to associations or outside companies.

"It was relatively uncommon at the time for publishers to be starting their own shows," he said.

Canon launched MD&M on the West Coast, and soon after, expanded it to Minneapolis and New York.

The company's MEDTEC shows are now held in Galway, Ireland, and Stuttgart, Germany.

Last September, Canon launched MEDTEC China at the China High-Tech Fair Exhibition Centre in Shenzhen. Encouraged by the turnout of 5,500 buyers, the organizer is pressing ahead with plans for MEDTEC China shows June 21–23 in Shanghai and Nov. 7–9 in Guangzhou.

In 1996, the year Cobert was named CEO, the company's founders sold Canon to private-equity firm Veronis Suhler Stevenson. Cobert credits VSS Managing Director Hal Greenberg's financial expertise for the company's fast growth, both organically and through acquisition.

"He was really very instrumental in our success. We were a good partnership. We understood the market, so we were able to go out and source the acquisitions. But we didn't have the financial or legal expertise to consummate a deal or understand how to value it — all the things the financial players do."

VSS held onto Canon longer than the five to seven years typical for private-equity investments. It put Canon on the market last year, and in May Apprise, backed by Spectrum Equity Investors, won it for $200 million. The buyer agreed to retain existing management.

"They obviously saw tremendous value in Canon and felt they could replicate under their leadership the fantastic results we had during our first go-round. The strategy is basically the same. They will have to grow the company very aggressively through acquisition and internal growth," Cobert said.

McCurdy said the company has been examining "selective acquisitions," adding, "I would not be surprised to see some interesting developments this year."

Cobert said he sees continued opportunity to expand Canon's existing brands abroad. "The medical device market is still growing. It's not as if that opportunity is capped out," he said.

The departing CEO also gave credit to tradeshow director Diane O'Connor. "I cannot imagine having worked for a better, more professional tradeshow staff than we have here. Diane and her crew have done an absolutely fantastic job," he said.