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Tarsus Grp PLC (TRS)

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Wednesday 08 January, 2014

Tarsus Grp PLC

Corporate Activity

RNS Number : 1316X
Tarsus Group PLC
08 January 2014
 



8 January 2014

Tarsus Group plc

Corporate Activity

Tarsus Group (LSE: TR, "Tarsus" or the "Group"), the international business-to-business media group, has further strengthened its portfolio through acquisitions in China and Turkey and has also agreed to dispose of up to 18% of the Group's French business.

China - SIUF acquisition

The Group has agreed to acquire 50% of the China (Shenzhen) International Brand Underwear Fair ("SIUF") from Mr Zhang Fengwei and associates (the "Vendor"). SIUF was launched in 2006 and has become a leading show in the Asian Pacific market for underwear garments. It is an annual event, held in May at the Shenzhen Exhibition and Conference Centre in Southern China. The show comprised 15,900 square metres (net) of space in 2013 and Tarsus expects it to continue its track record of growth in 2014.

The global underwear market is currently valued at approximately $30 billion. The Chinese market was valued at approximately $10 billion in 2010 and is the fastest growing market globally, supported by a strong domestic manufacturing and retail base.

To date, SIUF's core business has focused on domestic brands and going forward, utilising Tarsus' international knowledge and skills, will seek to internationalise the exhibitor range as well as launch a new sourcing event for lingerie manufacturers. The Vendor will continue to manage the business post acquisition.

Tarsus believes that SIUF will provide synergies with its Tarsus' Off-Price business where lingerie is one of the largest categories within the events.

The consideration will be met from Tarsus' existing cash resources and bank debt facilities. The acquisition is conditional on Chinese regulatory approvals and is expected to complete in the next few months.

Turkey - IFO minority interest acquisition

The Group acquired the outstanding 25% of the issued share capital of Istanbul based IFO not already owned by Tarsus in December 2013 from Mr Selahattin Durak, who will become an advisor to the Group. The Group purchased the initial 75% in June 2011.

IFO is one of the leading exhibition businesses in Turkey whose three events are Asansor (Lifts), REW Istanbul (Recycling and Waste Management) and Sign Istanbul (Outdoor Advertising and Visual Communications). IFO has shown strong growth under Tarsus' ownership and the acquisition will further consolidate Tarsus' position in the fast-growing Turkish market. The consideration will be met from Tarsus' existing cash resources and bank debt facilities.

France

The Group has agreed to sell up to 18% of its French business to Romuald Gadrat, the incumbent Managing Director of the division, who will continue to run the business going forward. This is in line with the Group's strategy of reducing its exposure to France.

Douglas Emslie, Tarsus Group Managing Director, said:

"These transactions are another key step in the execution of our "Quickening the Pace" strategy.

 "We are delighted to add SIUF, a market leading exhibition to our portfolio. China is an important market for us and this acquisition fits with our "Quickening the Pace" strategy as well as providing synergies with our Off-Price shows in the US. This acquisition will consolidate our position in this fast growth market.

"IFO was Tarsus's first purchase in Turkey and we have been very pleased with its performance since then, so we are delighted to acquire the remaining 25% stake in the business."

 For further information contact:

 

Tarsus Group plc


Douglas Emslie, Group Managing Director

020 8846 2700

Dan O'Brien, Group Finance Director

 




College Hill


Kay Larsen/Adrian Duffield

020 7457 2020

Notes to Editors

Tarsus Group plc (LSE:TRS) is an international business-to-business media group with interests in exhibitions, publishing and online media.  The Group operates globally in key verticals including aviation, medical, labels and packaging, discount clothing (Off-Price), housewares and automotive. Tarsus runs more than 80 events and websites and its flagship brands include the Labelexpo exhibitions in Europe, the Americas, India and Asia and the Dubai Airshow.

 

The Group operates across a worldwide network of offices in Dublin, London, Paris, Milwaukee, Boca Raton (Florida), Dubai, Shanghai, Jakarta, New Delhi and Istanbul. Tarsus is building on its strong presence in the emerging markets of the Middle East, China, Turkey, India, Indonesia and South America.

 

www.tarsus.com


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