Aegis Group to acquire Beijing eLink Advertising Co.

March 5, 2012 — Fusion DigiNet

Media and digital marketing group Aegis Group plc has entered into an agreement to acquire Beijing eLink Advertising Co., Ltd, a digital agency in China. The transaction is expected to close in the second quarter of 2012. eLink’s gross assets as of 31 December 2011 were £3.0 million.

Founded in 2007, eLink is a media-skilled full service digital agency specialising in marketing communications strategy, online media buying and online PR, as well as website design. eLink has grown rapidly, clients, include CMCC (China Mobile Communications Corporation), COFCO (China National Cereals, Oils and Foodstuffs Corporation) and ICBC (Industrial and Commercial Bank of China).

eLink will become part of the Isobar network in China.

China, Beijing

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Intelligent Energy raises £22 million

March 1, 2012 — Fusion DigiNet

Intelligent Energy, the clean power technology company, has completed its latest round of funding, raising in excess of £22 million from existing and new institutional shareholders. This investment, achieved through a placement at £2.30 per share, values the company (on a fully diluted basis) at over £300 million and will enable Intelligent Energy to increase its pace of commercialisation within the consumer electronics and stationary power markets.

“Intelligent Energy’s growth continues to gather momentum as we see firm traction for our clean and efficient power technology in each of our key market sectors: motive, consumer electronic and stationary power,” said Dr. Henri Winand. “Hot on the heels of our landmark joint venture announcement with Suzuki, this latest round of funding is firmly aimed at reflecting this success within our consumer electronics and stationary power divisions. Partners and customers are ready to take advantage of our scalable power cores in these markets, worth around $410bn and $150bn respectively, so it’s an incredibly exciting time for us.”

Dr. Mark Lawson-Statham, Director of Corporate Finance, commented, “This funding round, and the recently announced Joint Venture with Suzuki, further underlines Intelligent Energy’s rapid transition from a world class developer of power technologies to a company that is, through its relationships with key global OEMs, taking products deep into high volume markets.”

UK, Loughborough

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A Fusion Deal: International grain trading conferences, Global Grain Geneva and Global Grain Asia, sold to Euromoney Institutional Investor

February 29, 2012 — Fusion DigiNet

Fusion Corporate Partners are pleased to announce our third deal of 2012. The sale of international grain trading conferences, Global Grain Geneva and Global Grain Asia  to Euromoney Institutional Investor PLC.

Global Grain Geneva is the world’s leading event for international grain traders. It has been held every November since 2003 in Geneva, the main European location for the trading of grain, oilseeds and soft commodities. The event has grown every year since its launch and in 2011 attracted nearly 1,000 delegates from over 50 countries. Euromoney is acquiring all the issued share capital of Global Commodities Group Sàrl whose sole asset is Global Grain Geneva.

Global Grain Asia is a new event for grain and oilseed trade and industry professionals operating in Asia-Pacific. It launches in March in Singapore. Euromoney is acquiring 50% of the issued share capital of GGA Pte. Ltd whose sole asset is Global Grain Asia. Euromoney has an option to acquire the remaining 50% of GGA Pte. Ltd in 2014.

The prospects for grain trading are good. Agricultural prices move over long cycles and prices today are under-pinned by a rising global population, greater affluence especially in Asia where meat consumption is growing rapidly (for instance, every pound of beef requires seven pounds of grain to produce), and less farmland: by the year 2020, the farmland available per person is forecast by the Food & Agricultural Organization of the United Nations to be less than half that of 1950.

Global Grain Geneva has been organized by James Dunsterville, a commodity trader in Geneva who also publishes the respected grain price newsletter AgriNews (www.agrinews.ch) and by Andrew Osborne, an event and conference specialist. Global Grain Asia was recently set up by G Seelan, Managing Director, and Ms Sarasija Raman, Executive Director, of the Centre for Management Technology (CMT) in Singapore, and Messrs. Dunsterville and Osborne. All four of them expect to remain involved in the business until at least 2014.

“We are delighted to acquire Global Grain Geneva and Global Grain Asia,” said Padraic Fallon, Chairman of Euromoney. “Euromoney has a successful record of acquiring conferences and developing them into fast-growing global event businesses. Coaltrans Conferences and Metal Bulletin Events are two striking examples and we look forward to doing the same with the Global Grain conferences.”

James Dunsterville and Andrew Osborne of Global Commodities Group said: “Having successfully built Global Grain Geneva into a must-attend conference for the grain trade market, and more recently launched Global Grain Asia with CMT, we believe that Euromoney is ideally positioned to develop further the conferences worldwide. We are confident that their successful track record in acquiring and developing commodity conferences will add tremendous value to the international grain trade community. We look forward to using our know-how and experience to help them achieve this vision.”

Paul Slight, Director at Fusion, said, “We were delighted to work with James, Andrew, Seelan and Sarasija. These are two great trading events and will be an excellent fit with Euromoney’s commodities events businesses. It is the third Fusion transaction in the commodities area and we expect to continue to be active in the sector for some time to come.”

UK, London & Switzerland, Geneva & Singapore

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UBM 2011 results

February 28, 2012 — Fusion DigiNet

UBM plc has reported 2011 results.

Highlights

  • Revenues up 9.3% to £972.3m – underlying revenue(a) growth of 7.9%
  • Adjusted operating profit up 17.5% at £201.9m
  • Margin up to 20.8% from 19.3%
  • Fully diluted adjusted EPS up to a record of 56.8p, 6.6p (13.1%) up on 2010
  • Full year dividend up to a record of 26.3p, (2010: 25.0p)
  • Cash generation from operating activities up 31.7% to £203.7m (100.7% cash conversion)
  • Events profits up 44.6% to £135.2m, 62.5% of total excluding corporate costs
  • Emerging Markets revenues up 24.4% to £207.1m
  • Emerging Markets operating profit up 33.4% to £65.6m representing 30.4% of total
  • £71.2m invested in eight acquisitions
  • Debt profile improved with maturities extended, net debt of 2.4x EBITDA

David Levin, UBM’s Chief Executive Officer, commented:  “2011 has been a strong year for UBM, with EPS up over 13% to a record 56.8p.  An outstanding performance from our Q4 biennial events capped off a year of consistent delivery in which all our businesses met or exceeded their targets for the year. On the back of these results, the Board has declared a final dividend of 20p, up 1p over 2010, resulting in a record dividend for the year.”

“These results are the fruit of our consistent strategy to focus on providing marketing, communications and data services, in winning formats, to thriving business communities.  Our Emerging Markets revenues grew by more than 24% during 2011 and contributed just under a third of our overall profits: in 2011 we generated more revenue in China than in Europe for the first time. Our Events business performed particularly well and 1.7 million people attended UBM events in 2011, up from 1.3 million in 2010 with profits growing by 45%. The solid performance of Data Services and PR Newswire in 2011 reflects the initial benefits of our continuing investment in these businesses. Our Marketing Services businesses also continue to develop well, with the combined effects of continuing strong digital growth and print disposals likely to result in online revenues outstripping print revenues in 2012.”

“2012 trading has started well. We anticipate continued underlying growth and a positive performance across the business whilst recognising the continuing uncertainties of the global economy.”

Business performance

Full Year 2011

Full Year 2010

Change %

Change at CC

%

Underlying Change %
Revenue

£972.3m

£889.2m

9.3

11.3

7.9
Adjusted operating profit

£201.9m

£171.8m

17.5

19.8

2.3
Adjusted operating profit margin

20.8%

19.3%

1.5%pts

 

 
EBITDA

£218.7m

£188.2m

16.2

 

Adjusted PBT

£177.4m

£156.4m

13.4

 

 
Adjusted EPS

Fully diluted adjusted EPS

57.8p

56.8p

51.0p

50.2p

13.3

13.1

 

 
Dividend per share

26.3p

25.0p

5.2

 

 
Cash generated from Operations

£203.7m

£154.7m

31.7

 

 

 

 
IFRS Statutory results (£m)

Full Year
2011

Full Year
2010

Change
%
Revenue

972.3

889.2

9.3
Operating profit

155.4

132.3

17.5
Profit after tax

86.1

99.4

(13.4)
EPS (p)

31.1

37.3

(16.6)
Net Debt

526.4

484.6

 

 

 

  

Operational Highlights

Segmental results

 

Full Year

Full Year

Change

Change at CC

Underlying Change
£m

2011

2010

%

%

%
Revenue

Events

396.9

310.0

28.0

30.8

14.6
PR Newswire

187.8

181.2

3.6

6.6

4.2
Data Services

187.0

184.7

1.2

2.3

3.0
Marketing Services – Online

88.5

69.2

27.9

31.7

16.4
Marketing Services – Print

112.1

144.1

(22.2)

(22.0)

(4.6)
Total Revenue

972.3

889.2

9.3

11.3

7.9
 

 

 

 
Adjusted Operating Profit

 

 

 
Events

135.2

93.5

44.6

47.9

 
PR Newswire

41.0

42.1

(2.6)

0.2

 
Data Services

30.3

34.1

(11.1)

(11.1)

 
Marketing Services – Online

3.6

1.3

176.9

200.0

 
Marketing Services – Print

6.1

10.0

(39.0)

(40.2)

 
Net corporate costs

(14.3)

(9.2)

(55.4)

(55.4)

 
Total Adjusted Operating Profit

201.9

171.8

17.5

19.8

 
 

 

 

 

 

 
Adjusted Operating Profit Margin          
Events

34.1%

30.2%

3.9%pts

  
PR Newswire

21.8%

23.2%

(1.4)%pts

  
Data Services

16.2%

18.5%

(2.3)%pts

  
Marketing Services – Online

4.1%

1.9%

2.2%pts

  
Marketing Services – Print

5.4%

6.9%

(1.5)%pts

  
Total Adjusted Operating Profit Margin      

20.8%

19.3%

1.5%pts

 

 

Read the full announcement

UK, London

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UBM acquires four tradeshows

February 28, 2012 — Fusion DigiNet

 

 

UBM plc has acquired outright, or majority equity stakes in, the following four tradeshows for a total cash consideration of £19.4m and deferred consideration of up to £4.4m. In 2011 these tradeshows generated aggregate revenues of approximately £8.5m:

  • Malaysian International Furniture Fair (MIFF)
  • China International Exhibition & Symposium on Dental Equipment, Technology & Products (DenTech China)
  • Renewable Energy India Expo
  • Airport Cities Exhibition & Conference (ACE)

Malaysian International Furniture Fair – UBM plc has acquired outright the MIFF exhibition on behalf of UBM Asia from its private owners. Founded in 1995, MIFF is an export-oriented furniture tradeshow which is held annually in Kuala Lumpur. The exhibition focuses on office furniture, home furniture and wood furniture, alongside fittings to furnishing materials. The acquisition of MIFF enhances UBM’s strong position in the furniture exhibition market, complementing Furniture China in Shanghai, the Index fairs in India and Interiors in the UK. Over 400 exhibitors attended the 2011 MIFF event, occupying over 30,000 net square metres and attracting over 20,000 visitors, more than 40% of whom were from overseas. MIFF’s founder will remain with the business following its acquisition, together with a further 16 employees. In 2011 the event generated revenues of approximately RM 20m (£4.1m). The business’s gross assets as at 30 November 2011 were £5.4m.

DenTech China – UBM plc has signed an agreement to acquire a 70% equity stake in Shanghai UBM ShowStar Exhibition Co. Ltd., a newly formed joint venture which owns DenTech China, China’s leading dental industry exhibition, from its private owners. The fifteenth edition of Dentech was held in October 2011 in Shanghai. The event attracted over 500 exhibitors, who occupied approximately 12,000 net square metres. The event drew 65,000 visitors, primarily dental professionals, approximately 10% of whom came from overseas. A symposium was held alongside the exhibition, attracting over 2,600 delegates. Based in Shanghai, the business employs five staff. In 2011 the business generated revenues of approximately £2.3m. The business’s gross assets as at 31 August 2011 were £2.3m. The transaction is subject to regulatory approval and is expected to close within the next month.

Renewable Energy India – UBM plc has signed an agreement to acquire the Renewable Energy India exhibition – India’s leading event in this sector – from the Exhibitions India Group on behalf of UBM Asia. Launched in 2006, Renewable Energy India is an annual exhibition which focuses on non-depleting and environmentally-friendly renewable energy sources such as solar (65% of exhibitors), wind (30% of exhibitors), biomass, hydro, co-generation and geothermal. The 2011 show was held in August in New Delhi, attracting 527 exhibitors from 33 countries and occupying over 10,000 net square metres, with over 14,000 trade visitors and conference delegates. UBM stages similar events in Bangkok and

Kuala Lumpur: Renewable Energy Asia is held in co-operation with the Ministry of Energy of Thailand, attracting visitors from across the ASEAN region; the Green Energy exhibition in Kuala Lumpur is hosted by Tenaga Nasional, the largest power company in South East Asia. Renewable Energy India’s founder will remain with the business as a consultant for a period of three years, together with four employees based in New Delhi. In 2011 Renewable Energy India generated revenues of approximately £1.4m. As at 12 December 2011 the business’s gross assets of the acquired business were £0.1m. (See also separate DigiNet article on this acquisition here).

Airport Cities Expo – UBM plc has acquired Insight Media Limited, which owns the Airport Cities World Exhibition & Conference, from its private owners on behalf of UBM Aviation. UBM acquired 25% of Insight Media Limited in August 2010 as part of its acquisition of the Route Development Group. This transaction brings the remaining 75% of the company’s equity into UBM ownership. ACE is a peripatetic annual event which focuses on airport commercial activities and land use, the development of Airport Cities and the associated urban planning issues. The 2011 event was held in Memphis, TN and attracted over 600 delegates, 50 exhibitors and 32 sponsors. The 2012 event will take place in Denver on 25-27 April. The event’s Managing Director and team of four staff will join UBM Aviation as employees. In 2011 the event generated revenues of approximately £0.7m. As at 31 August 2011 the gross assets of the acquired business were £0.1m.

These acquisitions are expected to exceed UBM’s cost of capital criterion in the first full year of ownership.

David Levin, Chief Executive Officer of UBM plc said: “These acquisitions build on our well-established strategy of acquiring strong events that serve structurally growing markets and communities, and particularly events which operate in growth economies. We see attractive growth prospects for each of these events and look forward to those prospects being enhanced as they join the UBM family of events.”

UK, London & Malaysia, Kuala Lumpur & China, Shanghai & India, New Delhi & USA, Denver, CO

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A Fusion Deal: Fertilizer market information and analysis business Fertecon sold to Informa Group

February 28, 2012 — Fusion DigiNet

Fusion Corporate Partners are pleased to announce our second deal of 2012. The sale of fertilizer market information and analysis business Fertecon Limited to Informa Group.

FERTECON, founded in 1978, provides on subscription only,  price discovery, current information and analysis services to the global fertilizer industry.  Its data and forecasts are used by virtually all the leading fertilizer companies in the world as well as by many financial institutions.

Barrie Bain, Chairman and one of the founders of FERTECON Limited said, “This is an exciting development. FERTECON is an excellent fit with Informa’s Agra group. Agricultural developments drive the fertilizer market and the combination of FERTECON fertilizer industry knowledge with Agra’s insight into the agrifoodsector will create a unique resource of information and analysis. Informa’s knowledge of the food, freight, and energy sectors will significantly enhance FERTECON’s services to the fertilizer industry. FERTECON has a great team of market analysts and now they will have access to the resources of the Informa Group. ”

Barrie Bain and Vivien Bright, two of the former shareholders and directors of FERTECON Limited, will join Informa to help build FERTECON within the Group. Terry Phillips, the third shareholder and director, will work on a consultancy basis for the FERTECON business.

Paul Slight, Director at Fusion, said, “It was a pleasure to work with Barrie, Vivien and Terry. They have built a great business over the last 30 years and it will be an excellent fit with Informa’s Agra group.”

Fusion acted exclusively for the shareholders of Fertecon Limited. The team responsible for this transaction were Paul Slight (pslight@fusioncorp.co.uk) and Paul Kelly (pkelly@fusioncorp.co.uk). Waterfront Solicitors, headed by Matthew Cunningham, provided legal advice to the vendors.

UK, London and Tunbridge Wells, Kent

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72% rise in profits at Pearson

February 28, 2012 — Fusion DigiNet

Pearson Plc has reported 2011 Preliminary results.

 

Financial performance

  • Sales up 6% at CER in spite of tough trading conditions in many markets.
  • Adjusted operating profit up 12% to £942m with growth in all businesses.
  • Adjusted EPS up 12% to 86.5p (headline growth).
  • Cash conversion remains strong at 104%; operating cash flow of £983m (£1,057m in 2010, which benefited from an unusually high working capital contribution).
  • Return on invested capital of 9.1%, above Pearson’s cost of capital; ROIC lower than in 2010 largely due to significant acquisition spend and higher cash tax.

Growth markets

Digital revenues up 18% in headline terms to £2bn, now 33% of Pearson’s sales. Substantial digital growth in all parts of Pearson including:

  • Students using digital learning programmes up 23% to 43m.
  • Penguin eBook revenues up 106%; now 12% of total Penguin revenues.
  • FT digital subscriptions up 29% to 267,000; approximately 44% of total paid circulation.

Developing markets revenues up 24% in headline terms to $1bn ($834m in 2010), now 11% of Pearson’s sales.

Other highlights

  •  Operating margins reach 16.1% (up 1.0% points)
  • £896m invested in acquisitions including Schoolnet and Connections Education in North America and Global Education in China.
  • Balance sheet net debt of £499m – approximately £1bn of headroom available for bolt-on acquisitions.
  • Dividend raised 9% to 42.0p, representing Pearson’s 20th consecutive dividend increase.

Outlook

  • Pearson expects to achieve continued sales and operating profit growth in 2012, in spite of tough trading conditions and rapid industry change.
  • Revenues from digital and services businesses expected to exceed revenues from traditional publishing businesses in 2012.

Marjorie Scardino, chief executive, said: “The external environment provides a testing backdrop for these results, and all our industries face some degree of turbulence. But our strategy and long-term planning for change have helped us to another good year to add to our record of persistent out-performance. We believe those qualities, combined with the commitment and innovation of our people, will continue to serve our customers and our shareholders well.”

Financial summary

£ millions

2011

2010

Headline growth

CER growth

Underlying growth
Business performance
Sales

5,862

5,663

4%

6%

1%
Adjusted operating profit*

942

857

10%

12%

7%
Adjusted earnings per share

86.5p

77.5p

12%

Operating cash flow

983

1,057

(7)%

Free cash flow

772

904

(15)%

Free cash flow per share

96.5p

112.8p

(14)%

Return on invested capital

9.1%

10.3%

(1.2)% pts

Net Debt

499

430

(16)%

Statutory results
Sales

5,862

5,663

4%

Operating profit

1,226

743

65%

Profit before tax

1,155

670

72%

Basic earnings per share

119.6p

161.9p

(26)%

Cash generated from operations

1,093

1,169

(7)%

Dividend per share

42.0p

38.7p

9%

* Continuing operations

Divisional analysis

£ millions

2011

2010

Headline growth

CER growth

Underlying growth
Sales
North American Education

2,584

2,640

(2)%

1%

(1)%
International Education

1,424

1,234

15%

15%

4%
Professional

382

333

15%

17%

2%
FT Group

427

403

6%

8%

7%
Penguin

1,045

1,053

(1)%

1%

1%
Total

5,862

5,663

4%

6%

1%
Adjusted operating profit
North American Education

493

469

5%

9%

8%
International Education

196

171

15%

13%

2%
Professional

66

51

29%

31%

10%
FT Group

76

60

27%

22%

17%
Penguin

111

106

5%

8%

8%
Total continuing

942

857

10%

12%

7%

Read the full announcement

UK, London

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Bunge acquires Climate Change Capital

February 24, 2012 — Fusion DigiNet

Global agribusiness and food company Bunge Limited has acquired Climate Change Capital Limited (“CCC”), a U.K company that manages investments in companies, projects and technologies that provide products or services facilitating climate change mitigation or adaptation.

Daniel Rudolph, Managing Director, Bunge Financial Services Group, said, “Bunge’s Financial Services Group has been active in carbon markets since their inception, both as a buyer of carbon credits and an advisor to other market participants. The transaction builds on this long-term presence, combining two established players in sustainability markets and advisory services to create an organization with deep expertise and global reach.  We also see strategic and operational synergies resulting from the combined business, including an enhanced ability to expand service offerings.”

Basic CMYKJames Cameron, Vice Chairman, CCC, said, “Bunge’s Financial Services Group is well-placed to support the best interests of
existing investors and provide a stable platform to develop new investment opportunities.  As the world’s population grows, putting pressure on scarce resources, there is a tremendous opportunity for companies like CCC and Bunge to work to transform the way societies cultivate, manufacture, distribute, consume and develop.”

Fee income derived from CCC’s advisory and asset management businesses will be fully consolidated for reporting purposes. Assets in CCC’s underlying investment vehicles are owned by the investors in the vehicles and are not subject to consolidation in Bunge’s financial statements.

USA, White Plains, NY & UK, London

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Publicis Groupe acquires U-Link Business Solutions

February 24, 2012 — Fusion DigiNet

Publicis Groupe has acquired U-Link Business Solutions Co. Ltd (UBS), one of the leading Chinese agencies specialised in healthcare communications.

UBS will become part of Publicis Healthcare Communications Group (PHCG) and will be renamed UBS Saatchi & Saatchi Health.

Founded in 1997, UBS employs approximately 170 people at its Shanghai headquarters and Beijing office. UBS offers PR, events management, medical association relationships and brand management to its clients, which include Abbott, GenSci Pharmaceuticals, Johnson & Johnson, Novartis, Novo Nordisk, Pfizer, Roche, Wyeth and Xian-Janssen.

“The Chinese healthcare market is one of the fastest growing in the world” declared Nick Colucci, CEO and President of PHCG: “Adding UBS to our portfolio brings the Saatchi & Saatchi Health flagship brand to China, and will make PHCG one of the largest healthcare communications groups in the region.”

UBS co-founder and CEO Frank Xu will remain at the helm, taking the title of Managing Director and reporting directly to Ash Kuchel, President of PHCG Asia Pacific region.

With UBS’s acquisition PHCG continues its expansion in Asia, following its recent acquisitions of Beijing Dreams Advertising and Beijing Dreams Zhiyang Communication (May 2011) and the India-based Watermelon agency (March 2011).

This is the latest in a series of China agency additions for Publicis Groupe that includes Wangfan and Gomye (November 2011), Genedigi (June 2011), Dreams (May 2011), Interactive Communications Ltd (February 2011) and Eastwei Relations (November 2010).

France, Paris & China, Shanghai

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Target Partners invests in tado

February 24, 2012 — Fusion DigiNet

Munich-based venture capital firm Target Partners has invested in tado° GmbH. The company uses cloud computing, smart phones and the Web to improve on traditional home heating and cooling systems, reducing energy costs by around 30 per cent.

tado° has been in field trials since January 2011. The company is now giving selected early adopters the opportunity to beta test the system for free.

Talking about the investment decision Kurt Mueller, partner with Target Partners, said, “The founders of tado° previously founded a successful mobile technology company in 2007 and have a great shot at developing tado° into a world-class company,”

Germany, Munich

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