Kroll Sells Stake in ENK Intl.

Buyout firm investment will allow expansion of fashion show portfolio

By Margo McCall -- Tradeshow Week, 5/8/2006

Besides an array of fashion tradeshows, ENK Intl. now has another attractive accoutrement: "a significant investment" from Forstmann Little.

The private-equity firm's stake in the New York-based ENK will allow ENK to expand its offerings beyond the 22 shows it now produces in New York, Los Angeles and Las Vegas.

ENK founder Elyse Kroll will stay on as CEO and continue to hold shares in the company.

"I think it's a fantastic strategic alliance. ENK is a great company. It's been growing like gangbusters," said Kathleen Thomas, managing director for Berkery, Noyes & Co., which represented ENK in the transaction. "Now she's ready to take it overseas."

Thomas said selling a stake in the company was a difficult decision for Kroll, who had fielded previous overtures from investors.

"ENK has grown organically. It's been privately owned and operated by the founder. Now she has an investor with very deep pockets and lots of contacts globally," said Thomas. "What took a while is her deciding now is the right time and this is the right partner. She was trying to decide what the next step was for her company."

The transaction, expected to close this month, recalls Bain Capital's $400 million acquisition of a stake in Boston-based M|C Communications in August 2004. The move allowed M¦C to expand its continuing medical education classes overseas.

According to ENK, its shows together feature more than 9,000 exhibitors spanning more than 1 million net square feet of space. Sixteen ENK events last year were held in New York under the Accessorie Circuit, Blue, Brighte Companies, Children's Club, Clear, Collective, Fashion Coterie, Intermezzo Collections and Sole Commerce brands. Most were held at Pier 94, but at least one was produced at the Jacob K. Javits Convention Center.

ENK holds five shows in Los Angeles. Versions of Brighte are set for the California Market Center July 9–12, Aug. 11–14 and Oct. 20–23. Mezzanine Los Angeles will be held Oct. 20–22.

ENK also launched Brighte at the Venetian Hotel Resort Casino in Las Vegas last February.

Theodore Forstmann, founding partner of Forstmann Little, said his company was drawn by ENK's strong brand.

Since its founding in 1978, Forstmann Little has invested more than $10 billion in 30 companies, including sports talent and marketing agency IMG, producer of New York's Olympus Fashion Week and other fashion events.

Kroll, who didn't return phone calls, said in a statement that Forstmann Little's "tremendous support and expertise" will help ENK reach its full growth potential. She mentioned acquisitions, as well as expansion into Asia, as possibilities.

The investment could add a little steam to the competitive fashion show market. In addition to ENK's 22 shows, fashion buyers and sellers have Advanstar Communications' semiannual Tradeshow Week 200 MAGIC Marketplace, POOL Tradeshow and Project Tradeshow. Business Journals also puts on AccessoriesThe Show, FAME and Moda Manhattan.

Kroll, a former fashion publicist, launched ENK in 1981. The company received permission from New York in 2000 to develop Pier 94 into a venue for midsized tradeshows. Now called the UnConvention Center, Pier 94, the East 54th Street facility features 140,000 sq. ft. of exhibit space. City officials are considering proposals to more than double the venue's size.