UBM acquires US fashion trade shows

22nd Apr 2016 07:36

(ShareCast News) - UBM has acquired Business Journals Inc (BJI), a producer of fashion trade shows in New York and Las Vegas, for $69m in cash, which is expected to be repaid by the end of next year. As part of UBM's focus on events since it agreed to sell its PR Newswire arm in December, it said the addition of BJI was highly complementary to its existing fashion trade show portfolio and was expected to make a modest post tax contribution this financial year.Once synergies from the merger are achieved, BJI's first full year of contribution in 2017 is expected to achieve a return on investment in excess of UBM's weighted average cost of capital.BJI's show brands include AccessoriesTheShow, EDIT, FAME, Moda, MRket and Stitch, most of which run multiple times a year and in some cases in the same venues as UBM shows.BJI, which also operates several websites and publications serving the fashion sector, generated revenues of approximately $40m in 2015, of which $33m came from events and $7m from other marketing services.UBM chief executive Tim Cobbold said: "This transaction is very much in line with our 'Events First', strategy."It adds to our presence in North America and also in the fashion sector, both of which were already strong following UBM's acquisition of Advanstar at the end of 2014."We see excellent opportunities to deliver an improved experience for customers and to realise the operational benefits which scale will bring."