After months of speculation, UK-based organiser UBM has taken steps to sell its PR Newswire division, according to media reports.
The organiser is expected to earn about US$750m from the sale of the division.
PR Newswire generates revenue by charging fees to distribute media releases and publicity material to journalists.
Documents sent to prospective buyers show the division is expected to earn US$320m this year and deliver underlying profit of $87m, according to a report in The Sunday Times.
The newspaper reported US-based private equity firm GTCR is expected to be a frontrunner to buy the division.
The sale will bring a welcome cash boost for the company, which reported its first-half pre-tax profit fell 37.2 per cent to £47.6m (US$74.1m) in 2015.
As previously reported in EW, chief executive Tim Cobbold told an investor briefing earlier this year he was pleased with the company’s first-half performance, despite closing 37 trade shows.
Cobbold said UBM had made good progress rationalising its event portfolio and making targeted acquisitions as part of its Events First strategy.
A spokesperson for UBM told EW the company declined to comment.
