Tarsus Group plc – acquisitions in China and Turkey – disposal in France

TarsusTarsus Group, the international business-to-business media group, has ended the year strongly with like-for-like organic revenue growth up by approximately 11%. Tarsus has also made new acquisitions in China and Turkey and agreed to dispose of up to 18% of the Group’s French business.

China – SIUF acquisition

The Group is to acquire 50% of the China (Shenzhen) International Brand Underwear Fair (“SIUF”) from Mr Zhang Fengwei and associates. SIUF was launched in 2006 and has become a leading show in the Asian Pacific market for underwear garments. It is an annual event, held in May at the Shenzhen Exhibition and Conference Centre in Southern China. The show comprised 15,900 square metres (net) of space in 2013 and Tarsus expects it to continue its track record of growth in 2014.

To date, SIUF’s core business has focused on domestic brands but going forward will seek to internationalise the exhibitor range as well as launch a new sourcing event for lingerie manufacturers. Mr Zhang Fengwei and associates will continue to manage the business post acquisition.

The consideration will be met from Tarsus’ existing cash resources and bank debt facilities. The acquisition is conditional on Chinese regulatory approvals and is expected to complete in the next few months.

Turkey – IFO minority interest acquisition

The Group acquired the outstanding 25% of the issued share capital of Istanbul based IFO not already owned by Tarsus in December 2013 from Mr Selahattin Durak, who will become an advisor to the Group. The Group purchased the initial 75% in June 2011.

IFO is one of the leading exhibition businesses in Turkey whose three events are Asansor (Lifts), REW Istanbul (Recycling and Waste Management) and Sign Istanbul (Outdoor Advertising and Visual Communications). The consideration will be met from Tarsus’ existing cash resources and bank debt facilities.

France

The Group has agreed to sell up to 18% of its French business to Romuald Gadrat, the incumbent Managing Director of the division, who will continue to run the business going forward.

Douglas Emslie, Tarsus Group Managing Director, said:

“These transactions are another key step in the execution of our “Quickening the Pace” strategy.

“We are delighted to add SIUF, a market leading exhibition to our portfolio. China is an important market for us and this acquisition fits with our “Quickening the Pace” strategy as well as providing synergies with our Off-Price shows in the US. This acquisition will consolidate our position in this fast growth market.

“IFO was Tarsus’s first purchase in Turkey and we have been very pleased with its performance since then, so we are delighted to acquire the remaining 25% stake in the business.”

The Group expects to announce its final results for the year ended 31 December 2013 during the week commencing 3 March 2014.

UK, London & China, Shenzhen & Turkey, Istanbul & France, Paris

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ITE Group acquires Platform Exhibitions in Turkey

ITEE Uluslararası Fuar Tanıtım Hizmetleri A.Ş(EUF) in Turkey, a wholly owned subsidiary of exhibitions business ITE Group plc,  has acquired Platform Exhibitions Inc from Mahmut and Ayse Er.

Platform owns the Beauty Eurasia exhibition which serves the beauty, personal care and cosmetics industries in Turkey and the surrounding region. Beauty Eurasia is held in Istanbul in June each year. The 2013 exhibition was the 9th edition of the event which sold more than 8,000m2 net and was attended by over 21,000 professional visitors.

beautyEurasiaITE has an established portfolio of existing Beauty events in Ukraine and Russia and earlier this year acquired an interest in the CosmoBeaute series of events in South East Asia.

The terms of the deal were not disclosed. The consideration will be financed out of the Group’s existing balance sheet and the acquisition is expected to be earnings enhancing in the first full year of ownership.

Commenting on the acquisition, ITE’s Chief Executive Officer, Russell Taylor, said, “Beauty Eurasia is the leading beauty and personal care exhibition in Turkey. The addition of this exhibition to ITE’s Turkish business is consistent with our strategy of building market leading positions in core markets and sectors. The beauty and personal care industry is a growth sector in developing markets and with this acquisition, ITE will leverage its international exhibition expertise to develop further its position and benefit from a wider portfolio within this sector.”

Turkey, Istanbul & UK, London

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