Reed International PLC
25 July 2000
Issued on behalf of Reed International P.L.C. and Elsevier NV
Reed Elsevier announces the acquisition of Miller Freeman Europe for
£360/Euro 585 million
Reed Elsevier announced today that it has entered into a definitive agreement
with United News & Media plc to acquire the businesses comprising Miller
Freeman Europe for £360/Euro 585 million. The businesses will be integrated
principally within Reed Exhibition Companies which, following the acquisition,
will be the world's largest exhibition organiser.
Miller Freeman Europe is the leading trade exhibition organiser in Continental
Europe, serving the major European markets of France, Germany, Italy, Spain
and Scandinavia. It organises over 100 shows and has 66 related websites.
Its portfolio includes prestigious international and domestic events across a
number of sectors, including building and construction, retail, food and
hospitality and environmental services. It is also a major business to
business publisher in Italy with more than 50 journals.
This acquisition is an important strategic expansion of Reed Exhibition
Companies and represents an excellent fit both geographically and by sector.
Reed Exhibition Companies has leading positions in the US, UK and Asia and
now, with this acquisition, in continental Europe.
Reed Exhibition Companies has performed strongly over many years, with a well
established management team. The Miller Freeman Europe business has also seen
good revenue growth in recent years. The combination with Reed Exhibition
Companies provides a platform for acceleration of this growth as well as
margin improvements. Reed Exhibition Companies reported revenues in 1999 of
£301/Euro 458 million, whilst Miller Freeman Europe reported revenues of
£118/Euro 179 million.
Crispin Davis, Chief Executive Officer of Reed Elsevier, said 'The acquisition
is a significant step in the expansion of our Exhibitions business in key
markets and into Business to Business publishing in Italy. Reed Exhibition
Companies has a good track record of organic growth and in integrating
acquisitions, and the combination with Miller Freeman Europe provides a strong
platform for further growth.'
Mike Rusbridge, Chief Executive Officer of Reed Exhibition Companies, said 'We
are very excited about the opportunities from the acquisition of Miller
Freeman Europe. This high quality portfolio complements well our position in
Europe. We see good opportunities through the replication of strong market
leading concepts and the extension of established brands on a global basis.'
In the financial year to 31 December 1999, Miller Freeman Europe reported
revenues, including its share from joint ventures, of £118/Euro 179 million
and operating profits before interest and tax of £30/Euro 46 million. The
business operates with negative working capital and, at 31 December 1999, had
net operating liabilities of £19.5/Euro 31.4 million. The acquisition is
expected to be accretive to earnings before goodwill and intangible asset
amortisation in the first full year of ownership.
Following the acquisition, Reed Exhibition Companies will own and operate over
440 events across 29 countries and the proforma combined gross revenues in
1999 would have been £419/Euro 637 million.
The acquisition is being funded from Reed Elsevier's cash resources.
Acquisition of the French, Italian and Spanish businesses has completed today,
whilst completion of the acquisition of the business in Germany is subject to
regulatory approval and of the business in Scandinavia is subject to the
rights of the joint venture partner.
For further information, please contact:
Susanna Smart
+44 020 7227 5670
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