Reed Exhibitions Brazil has acquired Multiplus Fairs and Events, adding a strategically vital component to its growing global energy portfolio while also opening the door to new markets within the expanding Brazilian economy.
Multiplus, located in Ribeirao Preto in Sao Paulo State, organizes the leading ethanol manufacturing event in Brazil – Fenasucro – as well as the co-located agri-industrial event Agrocana. The company also works with Unica (Brazil’s sugarcane industry association) to produce the Brasil Ethanol Tradeshow alongside the association’s ethanol conference in Sao Paulo. In the northeastern city of Pernambuco, Multiplus produces a third event related to sugar cane and ethanol, Sucronor.
Brazil is the second largest producer of ethanol fuel after the USA and the world’s largest ethanol exporter. In 2009, Brazil produced 38% of the world’s total ethanol used as fuel and according to the Brazil Institute the country is the world’s “first sustainable bio-fuel economy.” At present, 90 percent of all new cars produced in Brazil run on “flex fuel.” According to the Brazil Ministry of Agriculture, as many as 100 new ethanol production plants will be built by 2014 to keep pace with demand. Nearly eight million hectares of sugar cane are under cultivation, but Unica expects this to increase to 14 million hectares by 2020.
“Multiplus is an important step in securing our position in the broader energy market of Brazil and, just as important, it is a key strategic element in our global renewable energy strategy,” said Chet Burchett, President of Reed Exhibitions Americas and a member of the company’s global board. “And Multiplus also puts us into important markets in Brazil’s Northeast and the interior of Sao Paulo State, with management that has proven its ability to launch and manage brands across a variety of industry sectors. That’s important in our long-term growth goals for Brazil.”
Reed Exhibitions has been active in Brazil since 1997, but in 2007 the company embarked on an aggressive plan for growth with the acquisition of a majority interest in Alcantara Machado and the formation of Reed Exhibitions Alcantara Machado (RXAM). Overnight, Reed became the largest tradeshow organizer in Brazil. In 2009, the selective acquisition of MG Media added the oil & gas-related Brazil Offshore to the RXAM portfolio of events as well as Salao Duas Rodas, the leading motorcycle event that joined the existing portfolio of Solao do Automovel (Brazil’s #1 auto show) and Fenetran, the country’s top truck and transportation event.
“Our goals for acquisition in Brazil are focused on strategic value. We already have the scale necessary for market leadership. Now, we are working a long-term plan with a clear understanding of where we want to play and how we intend to win,” Burchett said.
The addition of Multiplus opens the door to the furniture market in Brazil for Reed as well, with Movexpo e Brasil in Recife (the largest event in its sector in Brazil’s Northeast); Movinter, which is moving from Mirassol to Sao Paulo in 2012; and Salao Abimovel in Sao Paulo which Multiplus organizes on a management contract for the Moverergs, the furniture trade association.
Other events acquired as part of the deal include niche industrial services tradeshows (Forind and Forind Nordeste) in Sao Paulo and Recife, respectively, and a food service technology event (FFATIA) in Goiania, located in Brazil’s central western region.
Multiplus principals Augusto Balieiro and Fernando Barbosa will remain with the company and provide ongoing management of the existing events and new launches. Headquarters for the operation and its 38 employees will remain in Ribeirao Preto. Multiplus will report to Juan Pablo de Vera, who oversees RXAM as its president and is the senior executive for RX Brazil.