20th Jun 2011 07:00
UBM acquires 70% of US catering tradeshow business Catersource for $5 million
UBM plc today announces that it has acquired a 70% equity stake in the Catersource catering conference and exhibition and its sister show Event Solutions, which serves the event planning industry. UBM has acquired the majority stake from Catersource's private owners for a total cash consideration of $5 million, on behalf of UBM Live.
Founded in 1982 and based in Minneapolis, Catersource hosts an annual conference and exhibition for the USA catering and event planning industry, as well as awards events and supporting print and digital marketing platforms. The events take place annually during February and March in Las Vegas. This year's Catersource and Event Solutions shows attracted over 10,000 delegates and more than 4,500 sponsor and exhibitor companies.
USA catering industry revenues grew at 9% in 2010 - exceeding $14 billion - with similar rates of growth forecast for this year. The USA catering industry is highly fragmented, comprising approximately 80,000 catering operations nationwide. Catersource serves both the institutional and private segments of the catering industry.
Catersource will become part of UBM Live, adding to UBM Live's portfolio of events serving the Food & Leisure industries both in the USA and internationally. The portfolio includes brands such as Cruise Shipping, Food Ingredients, Health Ingredients, Leisure Industry Week and Confex.
Founder Michael Roman and his partner Kelvin Lee, together with Catersource's 13 employees, will remain with the business following completion of the acquisition. In 2010 Catersource generated approximately $4 million of revenue.
The acquisition is expected to meet UBM's cost of capital hurdle rate in its first full year of ownership.
Simon Foster, Chief Executive of UBM Live said:
"Catersource is the leading events business in the fast-growing US cateringindustry. We see strong opportunities to grow the brand by leveraging our USand worldwide events infrastructure, as well as driving synergies with otherUBM events. We are delighted that Kelvin Lee, Mike Roman and their team will bejoining UBM Live and look forward to working with them to develop the businessgoing forward." - Ends - ContactsMedia Peter Bancroft Director of Communications E-mail [email protected] Direct telephone +44 20 7921 5961 Chris Barrie Citigate Dewe Rogerson E-mail [email protected] Direct telephone +44 20 7282 2943 Mobile +44 796 872 72 89 Analysts/Investors Kate Postans Head of Investor Relations Email [email protected] Direct telephone +44 20 7921 5095 Notes to Editors1. UBM plc
UBM plc is a leading global business media company. We inform markets and bring the world's buyers and sellers together at events, online, in print and provide them with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists around the world. Our 6,000 staff in more than 30 countries are organised into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently.
For more information, go to www.ubm.com
2. UBM Live
Operating internationally, UBM Live operates a number of market-leading exhibitions, awards, websites and online products and publications in more than twenty different business sectors. Our leading brands include CPhI, IFSEC, Food Ingredients. Cruise Shipping Miami, Technology for Marketing and Advertising, International Confex, Informex and many more. With offices in the UK, Netherlands, USA, UAE and Brazil, UBM Live has successfully geo-cloned its leading CPhI, Food Ingredients, TFM&A and IFSEC brands into territories such as China, Japan, Asia, Eastern Europe, South America and Africa. As well as building relationships with our customers, we help wider communities through our corporate responsibility programme.
For more information, go to www.ubmlive.com
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