Cover feature
“Private Equity firms were also
very interested due to the size,
but the sale to Reed keeps it ‘in the
family’. This is a very logical purchase
for Reed given their strength in
Germany,” said Monnington. “It will
be interesting to see if they integrate
the business into each of their
country operations which would
mean that the Mack Brooks brand
would dissipate over time.”
Providence Equity Partners, which
acquired CloserStill Media at the end
of 2018 is no newcomer to the sector,
having previously owned Clarion
Events.
The move came after years
of significant growth for the UK
organiser, which was valued at
£25m (US$32.2m) in 2012 when
Phoenix Private Equity bought into
the company, rising to £125m in 2015
when Inflexion bought a minority
stake.
Flagship events for CloserStill
include the London Vet Show, Cloud
Expo Asia, Data Centre World,
The Pharmacy Show, Learning
Technologies and The Dentistry Show.
Since the Inflexion investment in
2015 the organiser has made eight
acquisitions – five in 2017 and three
in 2018 – but CloserStill Chairman
and CEO Phil Soar highlighted that
the majority of the company’s growth
had been organic, much coming from
the geo-cloning of successful shows in
Asia, Germany and the US, with the
launch of events such as Cloud Asia,
Learning Technologies Germany and
New York Vet.
Soar added: “Providence have a
superb track record in supporting
growth businesses, not least in the
tradeshow industry. It’s been a very
successful sector for them and they
understand it extremely well.”
In 2011 Providence acquired
George Little Management in the
US, which was then sold to Emerald
Expositions in early 2014 and, in 2017,
the company sold Clarion Events to
Blackstone for a reported £600m.
Andrew Tisdale, Managing Director
46
Issue 1 2019
“Billions flowing into the industry are
the proof that our industry remains
attractive for investors.”
parking and quality of exhibitors.
“Billions flowing into the industry
are the proof that our industry
remains attractive for investors,”
Hattendorf said.
Competition
Below:
Mack Brooks is set to benefit from the global reach of
new owner Reed, says Chairman Stephen Brooks
at Providence, described CloserStill as “an exceptional
business led by a strong management team with a proven
track record of developing and acquiring successful events
around the world. With a compelling global portfolio and
diverse customer base across the technology, learning
and healthcare sectors, CloserStill is well-positioned to
accelerate the momentum the business has generated.”
If all the M&A activity (there were 87 transactions
announced in 2018 according to Monnington, who said
it was the highest number since his company started
tracking deal activity) can be interpreted as a sign of
faith in the industry’s strength (there were 53 different
purchasers – also a high) then, on the side for concern,
is the clear indication that exhibitors are increasingly
questioning the fundamentals of the accepted role of
tradeshows.
The recent UFI & Explori Global Visitor Insights study
of 13,000 tradeshow visitors, provided evidence of that
and much food for thought on what turns on (and off)
tradeshow audiences. The research makes it clear visitors
say that their interest in other channels such as online
marketplaces and conferences will likely rise significantly
relative to tradeshows.
UFI’s MD Kai Hattendorf has also emphasised the report
underlined the importance of organisers getting the basics
right at their tradeshows: seating, catering, queuing,
Industry commentator and expert
Stephanie Selesnick, International
Trade Information, Inc. writing in
her UFI Blog, ‘Do you know your
competition’ offered insights into
how organisers could compete
effectively in this environment and
cited one post-show survey from one
of the largest US exhibitions which
contained the question: “Thinking
about the future of the industry, are
there any shows that could ‘steal the
thunder’ of the XYZ Show, or that
your company might attend instead
of the XYZ Show? Which show and
why?” The example came from a
successful annual exhibition which
engaged exhibitor and visitor bases.
Its exhibition space sells out every
year and there is a waiting list.
It would appear such organisers
should have no worries about
competition. But, Selesnick used
the example to show how they are
smart. “The question illustrates
that they are not complacent about
that year’s success. No matter how
successful the show, there is always
competition – another show or
technology waiting to pounce and
take away market share.” Selesnick’s
point is that asking the right questions
of your exhibition’s stakeholders –
exhibitors, visitors, sponsors, even
media, “is one of the best indicators
on the future health of not only your
show, but the industry it serves”. She
does note also, however, that having
heard the answers, then making the
adjustments is often the difficult part.
As we stride into our 2019
exhibition aisles with our business
models regenerating, Dr Who-style, it
is those that listen to their audiences
likely to be the ones attracting PE
attention and creating success.
w w w.exhibitionworld.co.uk