Exhibition News: Informa acquires Tarsus for £792m - An interview with Douglas Emslie скачать в хорошем качестве

Exhibition News: Informa acquires Tarsus for £792m - An interview with Douglas Emslie

Informa has acquired B2B events group Tarsus in a deal valued at £792m ($940m). Stephen A Carter, group chief executive of Informa, said: “We have long admired the Tarsus business which, like Informa, has been built around major brands in attractive, specialist B2B markets in the growing regions of Asia, China, the Middle East and the Americas.” Douglas Emslie, chief executive, Tarsus added: “I am extremely proud of the Tarsus business, our people and our customers. I could not think of a better partner than Informa to lead our brands and colleagues through the next phase of growth and expansion." The combination of Tarsus with Informa’s live and on-demand events portfolio brings together market-leading brands and deep customer relationships in a range of attractive B2B markets, they say. The portfolios are highly complementary and there is a strong commercial, operational and cultural fit between the two businesses, creating reach and depth in Asia, China, the Middle East and the Americas. There is strong portfolio alignment in healthcare (Health Connect Partners), beauty & aesthetics (A4M, LiVDerm), packaging (Labelexpo), infrastructure (Intertraffic), aviation (Dubai Airshow), fashion (SIUF, OFFPRICE) and sustainability (Intersolar, Mexico WindPower). Informa says integration will minimise disruption and maximise delivery in 2023. It projects annualised combination benefits of c.$20m through efficiencies in procurement, real estate, technology, event contracts and other areas. The combined business is also expected to create incremental revenue opportunities through the cross-marketing of major brands, digital expansion and new event launches. Other benefits of the deal outlined by Informa include its first party data engine, IIRIS (15m+ KEMA), which is set to directly benefit from Tarsus c.515k attendees, 8,350+ exhibitors and estimated audience (KEMA) of c.1.4m across its top ten exhibition brands. The initial Tarsus enterprise value of $940m implies a post-synergy multiple of c.9.9x EV/EBITDA in 2023/24 and sub-9x in 2024/25 (averaging years to remove biennial effect), delivering significant earnings accretion and post-tax return on capital, Informa notes. The consideration is financed in cash and $210m of Informa equity, based on 30-day average share price but forward valued by the seller at 850p, and subject to a two-year lockup. An additional earn-up of $45m payable if and when Informa’s share price reaches 850p within the two-year period. Informa reached agreement with Charterhouse Capital Partners and other shareholders to acquire Tarsus. Robert Leeming, partner at Charterhouse, said: “We are proud to have supported Tarsus’ development since 2019 and are confident that Informa is exceptionally well placed to deliver the next stage of the company’s growth strategy. We look forward to becoming a shareholder.” Tarsus owns and operates a portfolio of 160+ live and on-demand B2B event brands, with a focus on growing, specialist B2B markets with fragmented supply chains and high levels of innovation. The top 10 Tarsus brands are set to expand Informa’s Tier 1 portfolio to more than 85 brands. Since 2019, when Tarsus plc was acquired by Charterhouse, the Tarsus portfolio has been expanded and enhanced through 24 new launches and 11 targeted acquisitions. Like Informa, Tarsus is seeing a similar strong return to the market for live and on-demand B2B vents in 2023. The Tarsus business also benefits from biennial events in odd numbered years. Informa’s Mark Temple-Smith will step in as executive chair of Tarsus from completion through to the end of the Combination Programme in January 2024. He is currently Informa Markets chief operating officer and was formerly the CEO of Asia for Tarsus. Douglas Emslie, the current chief executive of Tarsus, will become a senior advisor to the Informa Group through the Combination Programme, guiding on talent, brands and partnerships. The combination of Tarsus with Informa is expected to generate c.$20m annualised operating synergies by 2025 through efficiencies in procurement, real estate, technology, event contracts and other areas. In 2023, Tarsus full year revenues are estimated to be more than £175m. Completion is expected by 1 July 2023. SUBSCRIBE for more content --- https://bit.ly/3Ddn2Lf Follow us on socials: #eventprofs #mashtv #meetings