Fusion Corporate Partners

UBM has reached an agreement to acquire Canon Communications LLC from Spectrum Equity Investors and Apprise Media LLC for $287 million.

View UBM’s acquisition presentation – PRESENTATION

Transaction highlights

• UBM to become the leading worldwide provider of tradeshow and related media for the growing medical device design and manufacturing market and adjacent advanced manufacturing sectors
• Creates excellent growth opportunities, particularly in emerging markets, leveraging UBM’s worldwide tradeshow infrastructure and expertise
• Complements UBM’s existing electronic engineering business, creating a richer set of information and marketing services
• Expected to be approximately 9% EPS accretive in its first full year of ownership, with Return on Investment in that year in excess of cost of capital
• The $287 million consideration represents a multiple of 7.8x EBITDA (LTM 30 June 2010); the transaction will be funded from existing bank facilities
• Continues UBM’s strategy of investing to establish strong positions in B2B markets that provide rich opportunities for profitable growth worldwide
• The transaction is subject to Hart-Scott-Rodino (HSR) antitrust clearance

In the twelve months to 30 June 2010, Canon generated $106 million (£68 million) in revenues and $37 million (£24 million) in EBITDA on a pro forma basis. Pro forma revenues and EBITDA for the six months to 30 June 2010 were $66 million (£44 million) and $27 million (£18 million) respectively.

David Levin, Chief Executive Officer, UBM said, “The acquisition of Canon is an exciting step for UBM, building on our track record of identifying, completing and integrating value-enhancing acquisitions over the last five years. Canon is a great strategic fit for us: it gives us a complementary portfolio of market-leading branded tradeshows and related products which serve highly attractive growth markets experiencing globalisation. The combination of Canon’s brands with both our worldwide infrastructure and our existing electronic engineering business offers us exciting growth opportunities, particularly in Canon’s core medical device design and manufacturing markets. The management team, led by Charlie McCurdy, have done a great job in developing the Canon business. I look forward to welcoming Canon’s staff to UBM and to working with them as we accelerate Canon’s growth.”

USA, Los Angeles

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