UBM plc to acquire Allworld Exhibitions

UBM plc has agreed to acquire Allworld Exhibitions for a cash consideration which values the Business at US$485 million on a debt and cash free basis.

 

Allworld is the leading privately-owned Asian exhibitions business operating 51 tradeshows in 11 countries and across nine industry sectors. Allworld generated revenues of $97.2 million and EBITDA of $37.6 million (38.7% margin) during the twelve months ended 30 June 2016.

Allworld is a high-quality, high-growth events business 

- Pure-play portfolio of large, high-margin events: 90% of revenues generated from 28 Major(1) events

- Consistent record of high organicsquared growth: 7.3% revenue CAGR over last 10 years

 

Strong strategic rationale, in line with Events First strategy 

- Strengthens UBM's market-leading position in Asia, creating the leading events business in the ASEAN region, and provides UBM with entry into the Middle East

- Strong sectoral complementarity with UBM's existing portfolio - particularly in Food & Hospitality, Packaging and Manufacturing - with entry into Oil & Gas 

- Significant opportunity to accelerate growth through operational initiatives and application of Events First best practices

- In combination with UBM, revenue growth is expected to accelerate over the next 24 months

 

Strong growth and margin expansion underpin attractive financial returns 

- Immediately enhancing to earnings in 2017

- Return on investment to exceed cost of capital from 2019

- Fully debt funded with new bridge facility

- UBM expects to maintain investment grade rating and return to target leverage corridor of 1.5-2.0x within 12 to 18 months (in line with financial policy) whilst maintaining flexibility to continue with regular bolt-on acquisitions