The transaction is subject to regulatory clearance.
Rotaforte owns the Istanbul Jewelry Show, an international exhibition for jewellery, silver, watches and related equipment. Now in its 25th year, the exhibition is held twice a year in March and in October. In aggregate, the shows attract almost 60,000 visitors and 1,600 exhibitors, occupying net show floor space of more than 28,000 square metres. Covered products include gold, silver and diamond jewellery, precious and semi-precious stones, pearls, mountings, watches and clocks, machinery, tools and equipment, display units and security devices. The business is supported by the Turkish Jewellery Association, a national trade body which represents more than 1,100 jewellery companies, including the major manufacturers. Rotaforte also publishes a supporting magazine (in Turkish and English) and organises Turkish jewellery pavilions at a number of third party events in Dubai, Italy, and India, as well as selling exhibition space at jewellery events in Russia and Ukraine.
Rotaforte was founded by Ms Sermin Cengiz in 1986 and currently employs 21 staff in Istanbul. In 2010 the business is expected to generate revenues in excess of $5 million. The value of the gross assets being acquired is $0.3 million.
Turkey ranks as the world’s second largest gold jewellery exporter, the fifth largest importer and the third largest producer. Its domestic jewellery industry is highly fragmented, making tradeshows an attractive sales and marketing platform. Turkey’s international jewellery market is driven by strong demand from adjacent regions such as Russia and other CIS countries, Eastern Europe, the Balkans and the Middle East.
Rotaforte’s exhibitions are highly complementary additions to UBM Asia’s existing portfolio of twelve jewellery tradeshows in China, India, Hong Kong and Japan, including the world’s largest jewellery fair: the September Hong Kong Jewellery & Gem Fair. UBM Asia’s worldwide sales and marketing capabilities in this market will help grow the number of international exhibitors and visitors at the Rotaforte shows, as well as driving Turkish participation at UBM Asia’s existing shows. The Istanbul Jewelry Show is well positioned to become the leading fair in the European and Middle East regions. The acquisition also provides UBM Asia with opportunities to bring its other products and brands to Turkish, Eastern European, Balkan, Russian, CIS and Middle Eastern markets.
Jime Essink, CEO of UBM Asia, said: "The acquisition of Rotaforte adds a further industry-leading exhibition to our jewellery portfolio and is in line with our strategy to enhance and expand our international presence in geographic regions of significant growth. Rotaforte provides strong synergies and opens up a wide range of new business opportunities both in Turkey and across the adjacent Middle East and CIS regions. I am looking forward to working together with Sermin, who will be Managing Director of the UBM Rotaforte joint venture company, and also her team, who have done a fantastic job in building the successful Istanbul Jewelry Fairs portfolio.”
