RNS Number : 2690K
ITE Group PLC
13 July 2011
13 July 2011
ITE Group plc
Acquisition of 60% of YEM FUARCILIK A.Ş. strengthens
ITE's leading position in the building materials and construction sectors
ITE Group plc, the emerging and developing markets exhibitions specialist, today announces the acquisition by its wholly owned Turkish subsidiary, E Uluslararası Fuar Tanıtım Hizmetleri A.Ş(EUF), of 60% of the shares of YEM Fuarcilik a.ş ('YEMF') from a group of private shareholders led by Mr Ugur Muldur (collectively 'The Sellers').
The consideration of TL32.64m (£13.1m) is payable in cash on completion with a further payment of up to TL8m (£3.2m) payable nine months after completion, based on YEMF achieving performance targets in 2011. The remaining 40% of YEMF will continue to be held by Yapi-Endüstri Merkezi a.ş ('Yapi'), the leading provider of data and information services to the building materials and construction industries in Turkey. There are matching put and call options over the remaining 40% of the shares on agreed terms over a three/five year period.
YEMF owns three Turkish exhibitions which serve the building materials and construction industries, one of ITE's core sectors. The principal event, TurkeyBuild, is held in Istanbul in April/May each year and is the leading construction event of its kind in Turkey. The 2011 version was the 34th edition of this successful event, sold more than 35,000m2 net and was attended by over 110,000 professional visitors. The other two exhibitions are held in Ankara and Izmir in September and October respectively.
YEMF's events will benefit from ITE's international sales network and its leading events in the Russian and CIS building materials and construction markets. ITE will benefit from the continuing partnership with Yapi and its activities within the building materials and construction sectors. The operating profits of YEMF are circa TL7.5m (£3m) per annum. Gross assets of YEMF on completion are expected to be TL14.3m (£5.7m). This acquisition is expected to be earnings enhancing in ITE's 2012 financial year.
Commenting on the acquisition, ITE's Chief Executive Officer, Russell Taylor, said:
"TurkeyBuild Istanbul is the market leading building and construction exhibitions in Turkey. The addition of these three exhibitions to ITE's Turkish business is consistent with our strategy of building market leading positions in core markets and sectors. ITE has a strong portfolio of construction exhibitions and an established base of supportive international exhibitors. YEMF's events are already market leaders in Turkey but will benefit from access to ITE's international customer base and its market leading construction events in Russia and CIS."
Russell Taylor, Chief Executive, ITE Group plc Tel: 020 7596 5000
Charles Palmer, Financial Dynamics Tel: 020 7831 3113
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