25th Sep 2007 08:30
25 September 2007 Daily Mail and General Trust plc (`DMGT') Acceleration of acquisition commitment: purchase of remaining 51% stake in George Little Management, LLC
dmg world media, the exhibitions division of DMGT, announces the acquisition of the remaining 51% stake in George Little Management, LLC ('GLM'), the United States' largest privately-held tradeshow management company. Their portfolio includes the New York International Gift Fair, in addition to a number of other shows on the Eastern seaboard. GLM becomes wholly owned with effect from 1 October 2007.
The total cost for the acquisition of the 51% stake is US$155 million (‚£77 million). In its most recent financial year to 30 September 2006, GLM's operating profit was $18 million on revenues of $70 million. We expect the transaction to be earnings enhancing before amortisation from the date of acquisition.
dmg world media acquired an initial 25% stake in GLM in January 2000, subsequently acquiring further stakes such that it has held 49% of GLM since January 2007. Put and call options had been in place whereby dmg world media was required to acquire the outstanding shares by 2014. This acquisition has now been accelerated.
Already holding gift trade shows in the key markets on the US west coast; upon completion of this acquisition, dmg world media will organise more exhibitions than any other organiser in North America. The company now organises 10 of the top 200 trade shows and 8 of the top 50 shows in Canada.
dmg world media also announces its intention to sell its Home Interest business in North America. This business unit comprises 40 consumer home shows in 28 cities across the US and Canada.
Enquiries to:
Peter Williams, Finance Director, DMGT 020 7938 6631
Andrew Honnor, Tulchan Communications 020 7353 4200
Mia Eng, dmg world media 001 416 385 2016
Daily Mail and General Trust plc Northcliffe House, 2 Derry Street, London, W8 5TT Tel 020 7938 6000 Fax 020 7938 4626 www.dmgt.co.uk Registered in England and Wales No. 184594
DAILY MAIL & GENERAL TRUST PLCRelated Shares:
DMGT.L