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ITE Group PLC (ITE)

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Friday 17 December, 2010

ITE Group PLC

Acquisition

RNS Number : 1480Y
ITE Group PLC
17 December 2010
 



 

17 December 2010


Acquisition of ZAO MVK expands

ITE's presence in the Russian exhibitions market

 

ITE Group plc, the emerging and developing markets exhibitions specialist, today announces the acquisition of 100% of the shares of International Exhibition Company CJSC ('MVK' or 'the Company') from its owners, a group of private shareholders. The total consideration is c. Euro 33 million, which is payable in cash on completion. The acquisition will be funded from existing cash resources and agreed debt facilities.

 

MVK is a significant Moscow exhibition business which owns twenty exhibitions with annual volume sales of more than 55,000m2 per annum. MVK's largest annual exhibitions serve the furniture, packaging, pumps and measurement industries. Two biennial events serve the printing and woodworking industries. MVK also organises a number of smaller events which focus on a broad range of industrial sectors including wood building, welding, labels, cables and similar technical events. This portfolio of events is complementary to ITE's existing exhibition interests and will both broaden and strengthen ITE's core activities in the growth markets of Russia and the CIS.

 

The business being acquired had gross assets of 156 million Roubles at completion and reported gross profit before tax of 87 million Roubles for the 2009 calendar year. The business has performed strongly during 2010 and is expected to report gross profit before tax of approximately 225 million Roubles for the 12 months to 31 December 2010. This acquisition is expected to be earnings enhancing for the financial year ending 30 September 2011.

 

Commenting on the acquisition, ITE's Chief Executive Officer, Russell Taylor, said:

 

"MVK has a high quality portfolio of events with strong market positions in sectors which are new to ITE. The addition of these exhibitions to ITE's portfolio is consistent with our strategy of expanding into new industry verticals in our core markets. ITE already has a strong portfolio of exhibitions in Russia and an established international sales network. ITE will be able to bring its international sales capability to the existing local strength of the MVK exhibitions to enhance the profiles of these events."

-ends-

Enquiries:



Russell Taylor, CEO  

ITE Group plc 

0207 596 5000

Charles Palmer/James Macey White

Financial Dynamics 

0207 831 3113

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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