The acquisition will further strengthen Informa’s growing Global Exhibitions business, adding 17 Trade Shows in the Construction and Real Estate vertical, including leading brands such as World of Concrete, Greenbuild and The International Surfaces Event, says Informa. The US business will complement Informa’s existing Exhibitions in Construction and Real Estate across the globe, including the Cityscape, Construct and Global Real Estate Forum Brands.
This acquisition follows a number of strategic acquisitions by Informa’s Global Exhibitions Division, including SupplySideWest, Fan Expo Canada / Dallas, and China Beauty Expo.
Stephen A. Carter, Group Chief Executive, said: “This acquisition enhances our presence in North American Construction and Real Estate, where we will gain a strong portfolio of brands and shows that serve this growing industry. The transaction is expected to be earnings-enhancing in 2015 as we continue to implement the group-wide Growth Acceleration Plan.”
The Management Team of the US Exhibitions Business, led by Rick McConnell and based in Irving, Texas, will join Informa from Hanley Wood.
Peter Goldstone, Chief Executive Officer of Hanley Wood, said: “Informa has a clear ambition to build a world-class Exhibitions Business. It will be a great home for the customers and employees of Hanley Wood’s Exhibitions business, becoming part of a Group with the capability to deliver further international expansion.”
Under the purchase agreement, Informa and Hanley Wood have agreed to enter into a 10-year partnership for the provision of mutual editorial, marketing and commercial support.
According to Informa, in the twelve months to the end of March 2015, the US Exhibitions Business being acquired is expected to report revenue of £41.3m ($67.7m) and adjusted EBITDA of £21.0m ($34.4m). Market-confidence in the North American Construction and Real Estate vertical remains strong, which is reflected in encouraging forward bookings across the portfolio of Exhibitions being acquired. Strong underlying momentum is expected to drive ongoing attractive levels of growth in the business, which should ensure that the acquisition is earnings-enhancing in Informa’s first full year of ownership.
Following the acquisition, the Americas as a region will account for close to half of Informa’s revenue in Global Exhibitions on a pro-forma basis, with the balance split fairly evenly between the Middle East / Africa and the Rest of the World.
The acquisition is part of Informa’s broader Portfolio Management programme, which aims to pro-actively adjust the portfolio mix to improve the geographical and vertical orientation and focus of the overall business.
As part of this programme, management is also now examining alternatives for its smaller Consumer information and forecasting businesses that are currently part of the Business Intelligence Division, says Informa.
