Exhibition World Issue 6 — 2019 | Page 9

Dealmakers “When PE acquires a business, it tries to deploy as much acquisition capital as early as possible in the first 12 months of their ownership in order to get the maximum amount of growth before exiting.” Steve Monnington Managing Director Mayfield Media Strategies Dealmakers here’s always speculation about how long Private Equity firms intend to hold their investment in an exhibition company before exiting, and often these sale decisions are unrelated to the actual investment. Ironically, if a business has performed exceptionally well, it could be sold earlier than originally planned in order to boost results for the overall fund and counteract other, underperforming, assets. That said, I think we have a new record for the shortest period of time a business has been held. Lloyds Development Capital, which in the past owned the NEC, acquired conference producer FC Business Intelligence (FCBI) at the end of August 2018 and has now sold it on to Thomson Reuters a little over 13 months later. FC Business Intelligence will become part of Reuters Events and one suspects some management pressure as Reuters is clearly a much more strategic fit for the FCBI team than straight PE ownership. When Private Equity acquires a business, it tries to deploy as much acquisition capital as early as possible in the first 12 months of its ownership, in order to get the maximum amount of growth before exiting. We generally see a spike in acquisition activity shortly after the deal - and we can see this with both Tarsus and CloserStill Media. Following their de-listing as a plc and acquisition by Charterhouse, Tarsus has announced two new deals – in China and Egypt. The China acquisition saw them acquire 70% of Shenzhen Zhong Xin Cai Exhibition Company, owner of Touch China & 3D Glass Expo, creating a 6th Chinese JV for them. It is the company’s first entry into the electronics sector – one of the new sectors where it aims to deploy the Charterhouse capital. Touch China is in competition with Reed’s C-Touch and Display, which Reed acquired in 2015 from a local organiser. Meanwhile, Tarsus has created Tarsus Egypt as a joint venture with Amr Shawki, Chairman of local organiser, Egytec. Shawki has launched many exhibitions in Egypt over the years and he sold his Electricx, Mefsec (Fire & Security) and Solar-Tec w w w.exhibitionworld.co.uk exhibitions to Informa in 2014. Initially Tarsus Egypt will concentrate on replicating shows from its portfolio, the first of which will be Zuchex Cairo. Tarsus acquired Zuchex in Turkey when it bought 70% of Life Medya in 2012 (and subsequently acquired the remaining 30%). We can expect to see other replications from its Turkish and Middle East portfolio and no doubt some acquisitions too. CloserStill, which is less than a year into ownership by Providence Equity, has made its third acquisition in as many months and its second in Spain, acquiring 80% of Interalia, which runs Infarma – the leading tradeshow for the pharmacy sector. The show alternates between Madrid and Barcelona. Having acquired two eCommerce shows and two 1-2-1 eForums from E World a couple of months ago, we should expect the roll out of more CloserStill brands into Spain in both healthcare and tech. Transactions during the two months to November 2019: Buyer Business Country Sector Reuters FC Business Intelligence Global Various Easyfairs Futurebuild UK Construction Easyfairs Packaging Premiere Italy Packaging IEG FINMAST Italy Textiles EMZ Partners Weyou France Portfolio HMP Provascular Germany Medical Closerstill Media Infarma Spain Healthcare Clarion MAU USA Marketing Comexposium RemaxWorld China Office Supplies Tarsus Touch China China Electronics Tarsus Egytec (JV) Egypt Housewares Deutsche Messe Legal/HR Innovation Australia/NZ Tech XPO Events 9 shows from North Point NZ Various Issue 6 2019 9