Tarsus Group PLC Acquisitions (6588Z)
February 10 2014 - 2:00AM
UK Regulatory
TIDMTRS
RNS Number : 6588Z
Tarsus Group PLC
10 February 2014
10 February 2014
Tarsus Group plc
Acquisitions in the US and Turkey
Tarsus Group plc (LSE: TRS, "Tarsus" or the "Company"), the
international business-to-business media group, is pleased to
announce the following acquisitions in two of its key markets. The
Company has agreed to acquire 100% of the assets of
HealthScienceMedia Inc. ("HSM") in the US and 60% of SADA Uzmanlik
Fuarlari A.S. ("SADA") in Turkey (together the "Acquisitions").
The Company has also today announced a placing of 5.0m shares
representing approximately 5.2 per cent of the Company's existing
issued share capital (the "Placing"). The Acquisitions and the
Placing are not inter-conditional and full details of the Placing
are contained in a separate announcement released today.
CARDIO
The principal asset being acquired from HSM is the
Cardiometabolic Health Congress ("CMHC" or "Cardio"), the largest
US event focused on the cardiometabolic field. It is an annual
congress which began in 2006 and is held over three days each
October in Boston. CMHC's 2012 delegates comprised approximately
1,500 practising clinicians.
Healthcare providers and physicians increasingly understand that
integrated management of all aspects of cardiometabolic risk
(including obesity and type 2 diabetes) is an important way to deal
with this rapidly growing problem area and this field of medicine
is attracting significant pharmaceutical company investment.
Cardio is complementary to Tarsus' existing medical business and
provides an established audience for the division's recently
launched new mainstream product, the Metabolic Medicine Institute.
We also believe there will be a number of possible synergies with
the Group's existing medical division. HSM is owned by Alex
Teperman, who will remain with the business on a consultancy
basis.
The unaudited profits attributable to the assets being acquired
in the twelve months to 31 December 2012 were US$2.0m
(approximately GBP1.2m) on revenues of US$3.5m (approximately
GBP2.1m) and the gross assets being acquired amount to
approximately US$0.5m (approximately GBP0.3m).
Tarsus is acquiring the assets of HSM for $14 million
(approximately GBP8.5m) of which $10m (approximately GBP6.1m) is
payable in cash on completion with the balance payable in two equal
cash payments after the 2014 and 2015 Cardio events
respectively.
KOMATEK
Established in 1967 and based in Ankara, SADA organises a single
event - Komatek - which was first held in 1991. This biennial (odd
years) show is Turkey's largest trade exhibition for construction
equipment and related products. The last edition was held in May
2013 at the Ataturk Centre in Ankara with combined indoor and
outdoor net space of 53,200m(2) . Over 400 exhibitor companies were
present and visitor numbers, at approximately 35,000, were 9%
higher than the 2011 event.
Komatek is the largest construction equipment exhibition in
Turkey and one of the largest events in Europe. With US$1.0
trillion worth of major construction and investment projects
expected to be completed in Turkey between now and 2023, the Group
expects strong growth in Turkey's construction market over that
timeframe.
SADA's management team has delivered strong performance to date
and will continue to run the business post-acquisition. The
exhibition also enjoys support from a key industry association.
The purchase of Komatek further strengthens Tarsus' position in
the Turkish market and adds scale to our Ankara operations. The
city's importance as an exhibition centre is expected to increase
when the new Akyurt venue has been built, which is anticipated in
2015. Additionally, the Group believes there are synergies with
Tarsus's CYF business, which owns Yapi Decoor (a building interiors
event) and the Group's infrastructure event in Indonesia.
Unaudited revenues at Komatek in 2013 were TL3.3m (approximately
GBP0.9m). Tarsus will pay an initial TL5.0m (approximately GBP1.4m)
on completion and two additional payments contingent on the profit
performance of the 2015 and 2017 events. The total consideration
for 60% of SADA is capped at TL20.0m (approximately GBP5.6m).
The Acquisitions and the Placing together are expected to be
earnings enhancing in the year ending 31 December 2014.
Douglas Emslie, Tarsus Group Managing Director, said:
"The two acquisitions are further steps in the execution of our
"Quickening the Pace" strategy. Both are exciting events in markets
where we have established a strong presence and which we believe
are likely to show further growth.
"Our focus will be on the effective integration of both
businesses as cornerstones of our future organic growth. Cardio
will bring greater access to the important US market for our wider
medical division and Komatek delivers critical mass to our
construction events in Turkey and Indonesia."
For further information contact:
Tarsus Group plc
Douglas Emslie, Group Managing Director 020 8846 2700
Dan O'Brien, Group Finance Director
College Hill
Kay Larsen/Adrian Duffield 020 7457 2020
Notes to Editors
Tarsus Group plc (LSE:TRS) is an international
business-to-business media group with interests in exhibitions,
publishing and online media. The Group operates globally in key
verticals including aviation, medical, labels and packaging,
discount clothing (Off-Price), housewares and automotive. Tarsus
runs more than 80 events and websites and its flagship brands
include the Labelexpo exhibitions in Europe, the Americas, India
and Asia and the Dubai Airshow.
The Group operates across a worldwide network of offices in
Dublin, London, Paris, Milwaukee, Boca Raton (Florida), Dubai,
Shanghai, Jakarta, New Delhi and Istanbul. Tarsus is building on
its strong presence in the emerging markets of the Middle East,
China, Turkey, India, Indonesia and South America.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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