Krakoff Takes Helm at VNU Business Media

Former head of Reed and Advanstar replaces Michael Marchesano

By Rachelle Crum -- Tradeshow Week, 8/21/2006

Nearly three months after Valcon Acquisitions succeeded in its $11 billion bid for VNU (now called VNU Group), it has promoted one leader, Michael Marchesano, and hired another, industry titan Bob Krakoff.

The Haarlem, Netherlands, and New York-based firm on Aug. 8 boosted Marchesano to the new position of executive vice president and chief transformation officer, responsible for leading the company's Project Forward business transformation program. Krakoff succeeds Marchesano as president and CEO of VNU Business Media USA.

Marchesano will report to VNU CFO and Interim CEO Rob Ruijter. Krakoff will work in the firm's New York office, alongside Marchesano and Ruijter.

Krakoff will continue (in his "spare time," he said) in his current role as chairman and CEO of the Boston-based Blantyre Partners, a strategic management and investment firm associated with the Blackstone Group. Blackstone is one of the private equity firms that controls Valcon Acquisitions (along with AlpInvest Partners, the Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners).

Before he started Blantyre, Krakoff was chairman and CEO of Advanstar Communications parent Advanstar from 1996 to 2004. He also spent 23 years with Reed Elsevier (parent company of Tradeshow Week), where he served as vice chairman of Reed Elsevier USA, a director of Reed Elsevier and chairman and CEO of Cahners Publishing.

Krakoff said the opportunity to lead VNU Business Media was appealing for many reasons, including its "fantastic brands in many major markets." And its arsenal of Tradeshow Week 200 shows is "just spectacular," he said.

In the 2006 TSW 200, VNU Expositions is second only to Reed Exhibitions in number of shows it owns and/or operates (Reed has 12, VNU 11). However, VNU is No. 1 in the ranking of show management firms by the total net square footage of its TSW 200 shows, with more than 4.1 million net sq. ft. Reed followed with slightly more than 4 million net sq. ft.

VNU's largest shows on the list are:

• the semiannual ASD/AMD Trade Show — Las Vegas, in conjunction with Las Vegas Gift Expo & ASD/AMD Jewelry Show (Nos. 15 and 20)
• Kitchen/Bath Industry Show & Conference (No. 32)
• Outdoor Retailer Summer Market (No. 52)
• Interbike Intl. Bicycle Expo (No. 67)
• Medtrade (No. 73).

VNU Expositions "is the shining star" of VNU's U.S. business, Krakoff added, noting that his plans for the company include launching and broadening shows. VNU Expositions will continue to be headquartered in Northern Virginia and to be led by President Greg Farrar.

Marchesano joined VNU in 1999 as president of Bill Communications and stepped into his most recent role in 2001. Prior to joining the company, Marchesano spent 22 years with business publication auditor BPA Intl., rising to president and CEO in 1994.

In an internal document to VNU Business Media employees, Marchesano stated that the group was "well underway in its transformation from a traditional media company to a business information destination."

Ruijter said, of Marchesano, "We are very pleased to have Mike take on this important role within VNU and drive a program that is crucial to our future success. Mike is an outstanding leader with demonstrated experience in achieving wide-scale cost efficiencies."

Ruijter added, "Bob Krakoff brings an outstanding track record of leadership and vast experience in the publishing and media industries to his new role."

Creative Expos & Conferences President Cherif Moujabber, who for several years has consulted with VNU, said, "Bob is going to bring an additional dimension to this set-up (and) a very international outlook as well, which I feel is an area where VNU could expand rapidly."

Project Forward is a three-year program, involving what VNU calls "corporate centers of excellence" to streamline and standardize processes and drive greater efficiency and effectiveness across a number of key corporate functions, including finance, human resources and information technology. Other teams will drive global business process improvements in such areas as real estate, facilities management, outsourcing and purchasing.

VNU shareholders approved taking the company private July 28.