1st Oct 2014 06:53
LONDON (Alliance News) - UBM PLC said Wednesday it will acquire events and marketing business VSS-AHC Consolidated Holdings Corp, also known as Advanstar Communications, for a total of USD972 million.
The acquisition will be funded via a new USD100 million bridge facility and a GBP563 million rights issue to be launched in November. UBM plans to host a markets day ahead of the rights issue, where Chief Executive Tim Cobbold will set out its strategy for growth.
Advanstar comes with a portfolio of 54 tradeshows and around 100 conferences in markets like fashion, licensing, life sciences, and power-sports, including 5 "highly profitable" events that would rank among UBM's 2013 top 20 by revenue. Advanstar operates the MAGIC Marketplace fashion event in Las Vegas, and Fashion Coterie in New York.
It also owns 30 publications, and 194 supporting websites and digital products.
The acquisition will increase UBM's focus on events, raising its events revenue by a further GBP135 million. It expects the acquisition to immediately add to earnings per share, and provide strong returns to shareholders. UBM said it has identified cost synergies of around USD10 million per year, estimated in the third full year.
"This is a great acquisition for UBM and its shareholders. In addition to being financially attractive, it strengthens UBM's core events business while balancing and complementing UBM's strong events portfolio in emerging markets," said Chief Executive Tim Cobbold in a statement.
Advanstar Chief Executive Joe Loggia will continue to manage the business, and report to Cobbold for a transition period.
"With greater scale, as the largest organiser in the US, and with access to international markets, the combined company will be strongly positioned for continued growth," Loggia added in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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