11th Nov 2014 09:44
LONDON (Alliance News) - Tarsus Group PLC said Tuesday that it has agreed to acquire the South Beach Symposium from SBS Medical Education LLC for a total of USD6.4 million, as it maintained its expectations for 2014.
Tarsus will acquire the event for an initial USD5.5 million in cash, with deferred payments to be made through to 2018 of USD900,000, from its existing financial resources. In 2013 the event saw a pretax profit of USD800,000. It is expected to add to Tarsus earnings in 2015.
The acquisition includes the symposium's planned online education business Dermatology Education Online and consideration for this business is payable in 2018, with reference to its profits in 2017. The maximum consideration for this business has been set at USD20 million.
Tarsus said it had traded in line with expectations in the third quarter of 2014, with key events performing well as it continued to focus on its "quickening the pace" growth strategy.
The media firm's largest event of the year, the Labelexpo Americas, produced a strong performance with strong visitor attendance and record re-bookings for its 2016 event, it said.
Tarsus continues to expect like-for-like bookings for the full year to be 8% ahead of 2013. However, it is planning cautiously for 2015, it said, in light of the current geopolitical situation. It continues to expect medical education revenue behind 2013 due to the uncertainty caused by the Affordable Care Act, known colloquially as Obamacare, in the US delaying investments from doctors.
However, the company is launching a new event, the Metabolic Medical Institute, which it expects to be a "positive driver" in this market in combination with its acquisition of the South Beach Symposium.
Its Chinese auto-aftermarket exhibition AAITF will move to Shenzen from Guangzhou in 2015, and Tarsus said it continues to invest in its future growth.
"We expect solid performances from our remaining shows in 2014, and the group remains confident of delivering a good performance for the full year," said Managing Director Douglas Emslie in a statement.
Shares in Tarsus are trading down 1.8% at 200.25 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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