Dmg world media Ready To Buy, Sell

Dmg world media is getting bigger and smaller, all at the same time. The global event business announced simultaneously that it had acquired what interest it did not already own in George Little Management and was placing its entire portfolio of 40 North American consumer shows on the market.

"We undertook a strategic review in the last few months," said dmg world media CEO Mike Cooke. "We looked at what we thought we could be strong in."

Its strength, Cooke added, turned out to be business-to-business events, primarily in the retail sector, something George Little happened to be strong in as well.

George Little owned, or managed for dmg world media, eight Tradeshow Week 200 shows, seven of them in the gifts sector, including the January and August editions of the New York Intl. Gift Fair (Nos. 25 and 28 on the most recent TSW 200).

Cooke said the strategic review also told the company that the consumer show industry was becoming increasingly populated by publishers of consumer publications "looking to vertically integrate." Dmg world media does not own consumer publications.

He said, "We think it's going to be difficult to continue to compete unless we get into other media," something the company is not interested in.

Dmg world media bought its first interest in GLM (25 percent) in 2000 with the idea of gradually buying more and more of it continuing through 2014. Before the close of the most recent transaction on Oct. 1, it owned a 49-percent interest.

Cooke confirmed that dmg paid $155 million for the majority interest to make a total of $280 million it has paid to GLM since 2000.

He said the GLM partners, including Jeff Little, president and grandson of the founder, George Little, originally asked that the deal be structured to gradually relinquish control over time, because "they wanted to be involved in the industry and wanted some security."

He added, "The reality is we've moved on from there."

Cooke pointed out that, although GLM was still managing several West Coast gift shows, dmg had recently acquired 100-percent interest in them. They include two editions of the Los Angeles-based California Gift Show and two editions of the San Francisco Intl. Gift Show.

"It has been difficult to invest in things," Cooke said.

As an example, he pointed to online strategies for the shows that both companies were interested in.

However, Cooke said, "it was difficult for us both to work out how to do it. It seemed like it would be much easier if we were one company."

Little, who will remain as a co-president, said accelerating the timeline was a good idea for two reasons: "One, it was a good deal for us, and two, it's the best thing for the business as a whole. Getting all our assets pulling in one direction just made sense."

Little said the combination of operations would would immediately increase efficiency.

Cooke will become chairman and co-president of GLM.

"We'll probably see more of him around here," Little said.

Little, Executive Vice Presidents Alan E. Steel and Jack Withiam, and Senior Vice Presidents Philip D. Robinson and Richard Pasternak will continue to lead the organization from its offices in White Plains, N.Y.

The acquisition of GLM adds about 40 shows throughout the United States and Canada to dmg world media's stable. Dmg will own 10 shows in the TSW 200 and eight in the TSW Canadian 50.

Jordan Edmiston Group Inc. is representing dmg in the sale of the consumer shows, virtually all home shows. The portfolio on the block includes events in 28 cities throughout the U.S. and Canada managed from 11 offices throughout the continent.

Dmg just recently completed the final sale of about a dozen consumer shows it put on the market about a year and a half ago. Cook expects the remainder of the portfolio to go to a single buyer.

"Before, we were tidying up our portfolio," he said. "This is entirely different. This is a good business. They make a lot of money."

Kristi Harrington of North East Expos, president of the Natl. Assn. of Consumer Shows, said it is likely that dmg will quickly find a buyer for its consumer show portfolio.