UBM Buys Allworld Exhibitions for $485 Million
U.K.-based UBM bought Allworld Exhibitions, a privately-owned Asian exhibitions business operating 51 tradeshows in 11 countries and across nine industry sectors, for $485 million.
Allworld generated revenues of $97.2 million and EBITDA of $37.6 million (38.7 percent margin) during the 12 months ended 30 June 2016.
“The acquisition of Allworld is wholly in line with our Events First strategy and represents an exceptional opportunity to accelerate growth by investing in a high-quality events business,” said Tim Cobbold, UMB’s CEO.
He added, “In so doing, we cement our position as the leading events business in Asia and achieve the No. 1 position in the fast-growing ASEAN region. We see excellent opportunities to accelerate organic growth in the business.”
Allworld is a pure-play portfolio of large, high-margin events in which 90 percent of revenues are generated from 28 major events. The company also has a consistent record of high organic growth, with 7.3 percent revenue CAGR during the last 10 years.
According to UBM officials, Allworld provides UBM with entry into the Middle East and fits well with UBM’s existing portfolio – particularly in Food & Hospitality, Packaging and Manufacturing – with entry into Oil & Gas.
In addition, there is significant opportunity to accelerate growth through operational initiatives and application of Events First best practices, they added.
Overall, the acquisition, is attractive financially because it is expected to enhance earnings in 2017, have return on investment to exceed cost of capital from 2019 and be fully deb- funded with new bridge facility
“Allworld’s management and employees bring tremendous experience and expertise to UBM, and I look forward to working with them to realise the growth potential of the combined business,” Cobbold said.