RNS Number : 2278C
ITE Group PLC
03 March 2011
3 March 2011
ITE Group plc
("ITE" or the "Group")
Acquisition of Krasnodar Expo expands
ITE's presence in the regional Russian exhibitions market
ITE Group plc, the emerging and developing markets exhibitions specialist, today announces the acquisition of 100% of Krasnodar Expo LLC ('the Company') from its owners, a group of private shareholders. The total consideration is c. 410 million rubles (£8.8m), which is payable in cash, 50% on completion, and 50% deferred until audited figures are confirmed. The acquisition will be funded from existing cash and debt facilities.
Krasnodar is a significant exhibition business based in the South of Russia. The business has a portfolio of more than twenty exhibitions with annual volume sales of circa 50,000m2. Krasnodar's largest annual exhibitions serve the construction and agriculture industries, amongst others. The portfolio of events is complementary to ITE's existing exhibition interests and will both broaden and strengthen ITE's presence in the increasingly important regional markets of Russia.
The business reported operating profit before tax of c. 90 million rubles (£1.9m) for the 2010 calendar year. This acquisition is expected to be earnings enhancing for the financial year ending 30 September 2011. The Company is a new entity which holds the trademarks and rights to run the exhibition business and had nil gross assets on completion.
Commenting on the acquisition, ITE's Chief Executive Officer, Russell Taylor, said:
"Krasnodar has a strong regional market position in the South of Russia which fits well with ITE's current business. Krasnodar's portfolio is complementary and the addition of this business is consistent with our strategy of expanding our regional presence in Russia."
Russell Taylor, Chief Executive, ITE Group plc Tel: 020 7596 5000
Neil Jones, Group Finance Director, ITE Group plc Tel: 020 7596 5000
Charlie Palmer/James Macey-White/Emma Appleton, Financial Dynamics Tel: 020 7831 3113
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