M&A Activity Update: No Damper on This Market
By Rachel Wimberly -- Tradeshow Week, 10/22/2007
As the fallout from the subprime mortgage crisis continues to ripple through other sectors of the economy, the tradeshow industry is one that seems in a position to count itself relatively lucky, so far.
According to the Jordan, Edmiston Group Inc.'s most recent mergers and acquisitions overview, there were 51 tradeshow-related deals in the first nine months of this year, compared with 35 in the same period last year, a 45.7-percent increase. Nevertheless, the overall value of the deals was only up 15.3 percent.
"There was a major impact in the summer, when the full impact of the (mortgage) meltdown hit, but it seems to have settled down," said Kathleen Thomas, managing director of investment firm Berkery Noyes. "Mega-deals will not get done at the terms they did in the past, but mid- and small-market deals continue to happen."
Even with the pressures on the marketplace, E.J. Krause, Tarsus Group, United Business Media, Crain Communications, Reed Exhibitions and other firms were still buying.
E.J. Krause, already a significant player in Mexico, snagged Plastimagen Mexico, the largest plastics industry exhibition in the country.
"We are extremely proud to acquire this successful and established international event for the EJK commercial and business portfolio in Mexico," said Ned Krause, president and CEO of E.J. Krause.
Tarsus Group spread its global reach even further with the purchase of four companies: Mumbai, India-based Label Expositions Private Ltd., serving the Indian label industry with the India Label Show; French clothing exhibition company SEPIC SAS and its two Paris-based shows, Mod'Amont and Midec; DMS Group and its Web site, www.CVBHotRates.com; and Interworks Limited and its Web site, www.exhibitions.co.uk.
UBM's U.K.-based business information division, CMP Information, bought Ithaca Holdings for $29 million in a deal that included six business-to-business events and three tradeshows.
Crain Communications acquired a few print titles and a plastics show, Plastics Design & Moulding, from U.K.-based Emap Communications.
Reed Exhibitions shed one of its companies, Switzerland-based Reed Messen, and bought a new show in Australia, Manufacturing Technology InFocus.
Contractors also got into the game. For example, GES Exposition Services purchased Poitras Exposition Services, a contractor based in Quebec City, Canada.
"(These companies) will continue to expand aggressively," Thomas said. "They have healthy balance sheets and aggressive strategic growth initiatives that likely will not be met through organic growth alone."
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