News
The Dealmaker
Steve Monnington of
Mayfield Media Strategies
runs the rule over the latest
global exhibition deals
M
&A transactions continue to be
almost non-existent as buyers
are reluctant to take a chance on when
exhibitions will take place and, when
they do, how affected they will be by
continuing restrictions on international
travel.
In the six month period March
to August last year there were 37
transactions. In the same period
this year, there were just nine and
with a number of deals on hold since
March, we can expect a resurgence of
transactions once confidence returns.
I covered some of these in my July
column but there are three additional
ones to report on.
U.S publisher and organiser Allured
Business Media (ABM) has acquired
publishing house Creative Age,
expanding its portfolio of professional
beauty shows, plus salon and spa media
brands.
Creative Age runs NAILPRO
exhibitions, competitions and
networking events along with several
magazines including DAYSPA,
MedEsthetics and Beauty Store
Business. Events organised by ABM
include Face and Body Spa conference
& Expo and the World Perfumery
Congress.
Messe Munich, organiser of the
world leading construction fair Bau,
has acquired Glasstech Asia and
Fenestration Asia from Singapore base
organiser, CEMS with the 2020 edition
scheduled in Bangkok.
At the same time, Messe Munich has
reached a strategic agreement with the
China National Building Waterproof
Association for the integration of its
China Roofing and Waterproofing Expo
into Bau China, scheduled for the end of
October this year in Beijing.
The Italian Exhibition Group (IEG)
was formed in October 2016 when
Rimini Fiera and Fiera di Vicenza
merged to create the largest Italian
organiser in terms of directly organised
exhibitions.
Since then, it has expanded, forming
agreements with Arezzo Fiere for its
jewellery shows as well as joint ventures
with local organisers in the USA, UAE
and China. Now it has acquired Dubai
based HBG Events, organiser of the
Dubai Muscle Show and Dubai Active
in a deal structure that includes an
extended earn-out to 2022, underlining
“An extended earn-out to 2022 underlines buyers
concerns about the rate of recovery for exhibitions.”
buyers concerns about the rate of
recovery for exhibitions.
There will be other acquisitions as
a direct consequence of Covid. A good
example of this is the plans to sell the
Geneva International Motor Show to
Palexpo, the owner of the venue where
it takes place.
This is the largest event in
Switzerland, regularly attracting
more than half a million visitors. The
2020 edition was due to take place in
February but was cancelled at short
notice as coronavirus started to take
hold.
Salon International de I’Automobile
the current owner decided to cancel the
2021 show amid weak support from car
brands. The organiser asked the Canton
of Geneva for financial support to help
cover the losses but was only offered a
loan with repayment dates that didn’t
help them and with the requirement
that a 2021 edition was held. The loan
was rejected and sale discussions were
triggered.
With most acquisitions on hold,
thoughts have turned to strategic
alliances. As with acquisitions, some
would have happened in normal times.
IEG’s announcement of a possible
integration with Bologna Fiere is a clear
strategic move as is Media 10’s new joint
venture with Dreampix Guangzhou to
create the ChuMan festivals - a series of
live events across major cities in China
for manga fans.
Others, such as the investment into
MCH Group by Lupa Systems, founded
by James Murdoch has been driven by
MCH’s need to strengthen its capital
structure and shareholder base in order
to cope with the consequences of the
coronavirus crisis.
The strategic partnership between
Germany’s DMEXCO@home and
the UK’s MAD//Fest will be 2020’s
largest virtual event for the media and
marketing industry. I’m sure we will
see many more of these as the year
progresses.
08 — September