TURKEY - Tarsus Group has purchased majority ownership of Turkey-based exhibition business, Instanbul Fair Organisation (IFO).
The deal sees the UK-based, listed group pick up 75 per cent of IFO shares for up to £10m (US$16.13m) in aggregate cash payments, subject to agreed net cash conditions. Tarsus MD Doug Emslie said the acquisition is in line with Tarsus’ “Project 50/13” expansion strategy into emerging markets including Turkey.
"The acquisition of IFO is an important step in increasing Tarsus' revenues from fast growing, emerging markets to 50 per cent of our total by 2013,” he said.
"IFO's events are market leaders in their domestic market. The Turkish economy is projected to grow at a rate of approximately five per cent between 2011 and 2013. Moreover, given Turkey's unique geographical position on the crossroads between East and West, we believe there is a significant opportunity to develop the existing IFO portfolio into world leading events and bring existing Tarsus assets into this vibrant market.”
IPO’s portfolio includes the biennial ASANSOR event for the lifts industry; REW, an annual event covering recycling, environmental technologies and waste management; and Sign, an annual international event for the outdoor advertising and visual communications market. Tarsus plans to export IPO’s events, as well as launch its existing brands into the Turkish market.
The acquisition is being funded by a £16m ordinary shares placement instigated by Investec and was brokered by Mayfield Media.
Emslie also spied opportunities for more mergers and acquisitions.
"The additional capital raised will also mean that a short-term reduction in the Group's debt levels will provide additional flexibility, allowing us to continue with our growth strategy and take advantage of further potential opportunities,” he said.
Last week, Tarsus said it was priming itself for the strongest six months of its show cycle with forward bookings at 75 per cent of anticipated full-year revenues.
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