Deals
UBM plc builds its events business in Turkey
Acquires 70% stake in EFEM, organiser of the leading baby product tradeshow in Turkey
UBM plc today announces it has acquired a 70% equity share in EFEM, one of Turkey's leading tradeshow organisers from its private owners and has formed a joint venture company with EFEM to be called UBM ICC. UBM ICC will develop EFEM's existing baby products shows and will further expand UBM's global portfolio of baby product exhibitions. Following this transaction, UBM will run a total of eight events in Turkey in 2013, three of which will be new geo-adapted launch events.
UBM has consistently invested in the development of its event portfolio in fast-growing markets and geographies. In 2011 UBM generated 40% of its events revenues in emerging markets. Working with in-country joint venture partners to bring together local market knowledge and experience with UBM's international capabilities and resources, UBM has built a track record of successfully accelerating the development of existing local events. UBM has also successfully launched new versions of existing UBM tradeshows adapted to meet
local market needs and the need of international visitors and exhibitors, a process known as geo-adaptation.
UBM's acquisition of a 70% stake in EFEM and the establishment of the UBM ICC joint venture extends a long-standing relationship between EFEM and UBM Asia which began with reciprocal sales and marketing arrangements for their respective baby-child-maternity tradeshows.
EFEM organises the International Istanbul Mothers, Babies, Children Products Fair (MBCP) (see http://bebekfuari.com/eng/) and Wintexpo Autumn Winter Baby Child Fashion Fair (Wintexpo), the leading baby shows in Turkey. Launched in1992 in Istanbul, MBCP is now the third largest baby products show in Europe, with the 2012 edition occupying 30,000 square metres of exhibition space at CNR Expo. EFEM's owners, Erdal Baykara and Hüseyin Irmak, and EFEM's eight staff will remain with the business. EFEM generated revenues of approximately £1m in 2011. As at 2 September 2012, the business's gross assets were less than £0.1m.
The acquisition is expected to exceed UBM's cost of capital criterion in its first full year of ownership.
The EFEM shows have clear synergies with UBM's annual Shanghai International Children-Baby-Maternity Industry Expo (CBME) (see www.cbmexpo.com), Asia's largest baby products show which this year attracted over 1,200 international exhibitors and more than 53,000 visitors, occupying over 115,000 square metres of exhibition space, representing 44% growth over 2011. UBM will launch geo-adaptations of CBME in Brazil and India in 2013.
Working in a separate joint venture established in 2010 with Turkish partner Rotaforte, UBM also now runs two Istanbul Jewelry Shows a year in March and October, (see www.istanbuljewelryshow.com). These shows have successfully extended UBM's Asia-centred jewellery tradeshow portfolio - which comprises more than a dozen shows across China, India, Singapore and Japan and includes the world's largest tradeshow, the September Hong Kong Jewellery & Gem Fair - to Turkey.
In 2013 UBM will launch a further three geo-adapted events in Turkey: FI Istanbul (the latest geo-adaptation in the Food Ingredients portfolio, see http://www.ingredientsnetwork.com/events), Black Hat Istanbul (a geo-adaptation of IT security events, see www.blackhat.com) and IFSEC Istanbul (a further geo-adaptation of the IFSEC brand http://www.ifsec.co.uk/Content/ UBM-Lives-Security-Portfolio) .
David Levin, Chief Executive Officer of UBM plc said:
"With seven UBM events running in 2013, three of which are new geo-adaptions of UBM shows which are already successful in other countries, Turkey is an exciting market for UBM and for our joint venture partners. We continue to see great opportunities in countries like Turkey, Brazil, India, China and across the AEAN countries for us to leverage our global infrastructure and event portfolio to support the development of national and global trade in the fast-growing markets we have chosen to operate in."
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