Diversified Stakes Claim in HD Expo

The dark clouds over the fourth quarter's mergers and acquisitions market parted with a little ray of sunshine Nov. 17 when Portland, Maine-based Diversified Business Communications acquired an equity stake in HD Expo, which has a series of same-named shows, and formed a partnership with its owner, Kristin Petrovich.

“Diversified is actively looking for opportunities to partner and acquire strong industry franchises,” said Nancy Hasselback, Diversified's president and CEO. “The HD Expo team, led by Kristin Petrovich, brings a depth of experience and expertise in the growing entertainment technology community.”

Petrovich, who will lead the division under the name HD Expo, said, “We are excited about the future growth opportunities for our product portfolio as part of Diversified.”

Burbank, Calif.-based HD Expo, which was launched in 2001 and serves the high-definition production and content creation communities, came on Diversified's radar when Hasselback and Petrovich met at a Society of Independent Show Organizers' event a few years ago.

“Right off the bat, I knew that I liked Nancy and what she represented,” Petrovich said. “After I learned more about Diversified, their properties, their team and the company culture, I knew that we had a potential to see if there was a fit to work together.”

Hasselback said her interest, too, was piqued when she first met Petrovich. “It was clear that the vision of HD Expo is in line with ours,” she added.

While other companies have been watching their stock prices plummet, and wondering whether they would make it through the economic downturn, Hasselback's company has been looking to grow.

“Diversified is a privately-held company and not highly dependent on credit financing,” Hasselback said. “An economic downturn can be an opportune time to grow a business and be positioned strongly when conditions change.”

It looks like investing in HD Expo most likely will pay off as well. According to Petrovich, the largest of HD Expo's four annual events, recently held Oct. 29-30 at the Burbank (Calif.) Marriott, “had a sellout floor plan, and we took over all the ballrooms, convention center and breakout rooms for the event.”

The two Los Angeles-area events usually are the biggest of the four, with the March show also tracking well, she added.

“Each expo has a different maturity level and serves somewhat different regional markets,” Petrovich said. “The Chicago and New York shows are younger and take less space, but while they currently have a smaller attendee base, we see strong potential for significant growth during the next year.”

That growth will be aided by the new deal with Diversified, she added. “HD Expo will have more support and resources with Diversified,” Petrovich said. “They are a global company and have the business backbone that will allow us to grow and expand to what we believe is HD Expo's potential.”

Diversified is new to the entertainment technology sector, Hasselback said, and already has interests in the seafood, food service, natural and organic products, commercial marine, integrative health care and business management sectors.

And, she added, the company wants to expand even further.

“We will continue to be opportunistic and focused on growth through acquisitions, partnerships and expansions into new geographic markets and industries, especially with less competition from financial investors,” Hasselback said.