m&a EXHIBITION NEWSEXHIBITIONNEWS.CO.UK JUNE 2011 15 DealmakersMayfi eld Media's Steve Monnington looks at the latest international mergers and acquisitions activity in the exhibition industry.Easy to showVario display kits . 14 solutions - straight out of the box . quick set-up for self-assembly - animated guides online . no special toolsRTD Systems Limited10 Lyon Road South Wimbledon London SW19 2RLsolutions@rtdsystems.co.uk www.octanorm.co.ukT 020 8545 2945 F 020 8545 2955Vario_kits_60x190_v1_110111.indd 412/1/11 16:11:37In the UK, the big news of the month is the acquisition by Tarsus of a majority stake in Turkish exhibition organiser Istanbul Fair Organisation (IFO). The purchase is subject to shareholder's approval for the placing of additional shares. This marks a new territory for Tarsus as it joins ITE, Hannover Messe International, UBM, Clarion and others in what is becoming the fastest emerging market to be internationalised. IFO is considered one of the best independent organisers with a portfolio of three events - Asansor (elevators), REW (recycling) and Sign - and will become the hub for Tarsus' expansion in Turkey.Diversifi ed Business Communications acquired the Service Desk and IT Support Show from VCM Events. This represents the fi rst technology-focused event in Diversifi ed's UK portfolio and is quite a departure from the organiser's usual sectors. Diversifi ed has always maintained that in order to grow, it needs to move into new sectors and, like the rest of its portfolio, Service Desk is a community-oriented event. The winding up of Visit London due to public spending cuts has forced Best of Britain Events to sell the Best of Britain and Ireland travel and tourism exhibition to Expo Management, organisers of Eurobus Expo and Coach and Bus Live. Although the relationship didn't start entirely positively when Expo Management tried to launch a competitive event, the pair have been quietly working together for quite a while so this doesn't come as a surprise. Messe Frankfurt continues to be the most acquisitive German Messe with the purchase of the GreenShowroom fashion trade show the way into the Saudi Arabian market with a partnership with the National Exhibition Company, Reed Exhibitions has entered the Saudi market by signing a strategic partnership with Sunaidi Expo. Sunaidi organises jewellery and home decor shows and this will augment Reed's presence in the Middle East. ENin Berlin. Messe Frankfurt has been focusing on sustainable textiles and production in its Paris, New York and Asian textile portfolio. GreenShowroom, with its fashion, accessories and lifestyle products made using environmentally friendly and sustainable methods, is a logical addition.Moving east, we can see a classic piece of entrepreneurialism from Tim Etchells of Single Market Events. First spot a gap in the market, bring together two partners - Montgomery and Will Ramsey, organiser of the UK's Affordable Art Show - and Art Hong Kong is born. Three years later with 45,000 visitors attending the third edition, he's sold a majority stake to the most prestigious organiser of Art Fairs, MCH Swiss Exhibition (Basel), organiser of Art Basel and Art Basel Miami Beach exhibitions. UBM extended its reach in South East Asia with the acquisition by UBM Asia of AMB Exhibitions, which operates shows in Malaysia, Vietnam and the Philippines. The portfolio includes exhibitions for the water, livestock, energy and mechanical/electrical sectors. I had the pleasure of working with AMB founder Andrew Siow many years ago when he joined Blenheim from Montgomery. Andrew was instrumental in developing Blenheim's business in Asia and over the 15 years since Blenheim sold its business to UBM, he has created his own independent business and also sold to UBM.Finally for this month, and 15 months since Informa led
In May, Tarsus Group joined a host of UK organisers putting their fl ags in Turkish sand by acquiring Istanbul Fair Organisation (IFO). The deal sees the UK-based, listed group pick up 75 per cent of IFO shares for up to £10m in aggregate cash payments. IPO's portfolio includes the biennial ASANSOR event for the lifts industry; REW, an annual event covering sustainability; and Sign, an annual international event for the visual communications market. Tarsus MD Doug Emslie said the acquisition is in line with Tarsus' "Project 50/13" expansion strategy to see 50 per cent of total revenues coming from emerging markets by 2013. It has already identifi ed other local businesses it would like to acquire, Emslie said. The deal between Tarsus and IFO was brokered by Mayfi eld Media."We have always held Turkey to be a market we wanted to expand into, but felt it was only this past year that the timing was right," Emslie said.Talk to any UK exhibition organiser of some stature and you'll fi nd a plan to expand internationally and Turkey is fast becoming top of the list. Late last year, UBM purchased a 65 per cent stake in Rotaforte and its jewellery fairs. ITE Group is increasingly involved in the region through Gettinginto TurkeyTarsus is the latest local company staking a claim in Turkey. EN takes a look at why this region has become a hotspot for UK exhibition organisers. 16 JUNE 2011 EXHIBITIONNEWS.CO.UK EXHIBITION NEWS news analysisits E International Exhibitions (EUF) arm and now holds exhibitions across several different industries including construction, building and stationery and offi ce products. And Clarion joined the fray by acquiring Survey Turkey in June 2010. Why Turkey?Turkey's geo-political position has long made it capable of unlocking the economic potential of Eurasia; the Balkans, Ukraine, Russia, mid-Asia and the Middle East; a region inhabited by more than a billion people. With rumours of a large government-owned venue being mooted for Istanbul, in addition to existing venues CNR and TUYAP, there's increasing commitment being shown to the exhibition industry. Turkey is also at the forefront of regional efforts to establish a free trade zone, an ambition that becomes increasingly pertinent as trade routes open with the collapse of dictatorial governments in the Middle East."The Turkish economy is projected to grow at a rate of 5 per cent between 2011 and 2013," Tarsus' Emslie explained. "Moreover, given Turkey's unique geographical position on the crossroads between East and West, we believe there is a signifi cant opportunity to develop the existing IFO portfolio into world leading events and bring existing Tarsus assets into this vibrant market."It helps that Turkey's exhibition industry is owned by the private sector, while Government actively promotes trade and investment with neighbours. Additionally, in line with its policy of cooperation, Turkey's visa diplomacy has removed travel restrictions with countries including Jordan, Lebanon, Syria and Iran. "With the country delivering impressive growth fi gures for many years, it is easy to see why Turkey appeals to exhibitors at international trade events," ITE Group International sales director Andy Braid said in a statement.ITE is one of the biggest international organisers in Turkey alongside Germany's Hannover Messe. Though EUF, ITE is working in partnership with ministries, associations and institutions to co-organise events, but not with other full-time event organisers. Braid pointed out yields are low in Turkey, demand is high and strong relationships matter."Turkey is strong in many sectors such as agricultural, manufacturing and business services," Braid continued. "The mining sector is also strong and while the country is a net importer of oil and gas, it is a major transport hub for hydrocarbons." Building, construction, production technologies, textile, automotive, agriculture and food processing industries are among other leading sectors. Business focusedAt this stage, the majority of events in Turkey are trade events. There are very few consumer shows and according to MD of Mayfi eld Media, Steve Monnington, Turkey isn't yet ready for them. "One of the problems Turkey has in creating vertical shows with content is the lack of the combination of good large exhibition space and proper professional conference venues," he claimed. "I think the demand for the educational elements has been suppressed and people accept what there is right now. And this they do well - go to any exhibition here and you see people on the stands doing real business." Clearly, Turkey's exhibition industry will change dramatically in the next year and UK organisers are the ones to watch. ENInternationals in Turkey: . UBM acquired 65 per cent of Rotaforte, organiser of the Istanbul Jewellery Fair.. Clarion purchased Survey Turkey, organiser of furniture shows.. Italy's Bologna Fiere partnered with Ipekulu, organiser of the Beauty Eurasia show. . Messe Stuttgart acquired a majority stake in ARES and its bakery tech event IBATECH.. Munich Messe struck an alliance with EKO, which runs a transport and logistics show.