The event and publishing group Informa has announced its biggest acquisition since Lord Carter of Barnes became CEO, with the purchase, for £237m (US$375m) of Hanley Wood, an American exhibitions operator.
An announcement of a placing of up to 9.99 per cent of the group’s issued share capital is effectively funding the cash acquisition of Hanley Wood Exhibitions in full.
The acquisition will add 17 tradeshows in the Construction and Real Estate vertical, including brands such as World of Concrete, Greenbuild and The International Surfaces Event.
This acquisition follows a number of strategic acquisitions by Informa’s Global Exhibitions Division, including SupplySideWest and China Beauty Expo.
Group Chief Executive Stephen Carter, said: “This acquisition enhances our presence in North American Construction and Real Estate, where we will gain a strong portfolio of brands and shows that serve this growing industry. The transaction is expected to be earnings-enhancing in 2015 as we continue to implement the group-wide Growth Acceleration Plan.”
The management team of the US Exhibitions Business, led by Rick McConnell and based in Irving, Texas, will join Informa from Hanley Wood which has also agreed to enter into a 10-year partnership for the provision of mutual editorial, marketing and commercial support.
The US exhibitions business being acquired is expected to report revenue of £41.3m ($67.7m).
Following the acquisition, announced 18 November, the Americas as a region will account for close to half of Informa’s revenue in global exhibitions on a pro-forma basis, with the balance split fairly evenly between the Middle East/Africa and the Rest of the World.
The acquisition is part of Informa’s broader Portfolio Management programme, which aims to adjust the portfolio mix to improve the geographical and vertical orientation and focus of the overall business.
As part of this programme, management is also set to take action over the under-performing business information offshoot.
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