Informa will acquire the exhibition business from Hanley Wood has agreed to sell its exhibition for $375 million in a sale expected to close by the end of 2014.  The deal includes 17 trade shows led by World of Concrete and involving exhibitions in real estate, design, and construction.

Informa reports the events group’s projected revenue through March 2015 as $67.7 million, with EBITDA of $34.4 million. The price Informa paid is 5.5x revenue. Outsell’s Valuation Model projects a 3.8x revenue multiple, a price of $257 million for Hanley Wood’s events business. UBM’s October 2014 acquisition of Advanstar (60% of revenue from events) had a price of 3.3x revenue and the ONEX/Emerald acquisition of Nielsen Expositions was priced at 4.0x revenue.

Although the high multiple that Informa paid for the Hanley Wood events was one headline, the  important headline this deal telegraphs to the industry is the unique 10-year contractual partnership between the  media division of Hanley Wood and the events acquired by Informa.  Among the elements of the partnership:

  • Hanley Wood brands remain as the official media for the events and Hanley Wood will sell media-related products, including show dailies around the events.
  • Hanley Wood provides thought leadership and domain experts and speakers for the events.
  • Hanley Wood provides additional audience reach for promoting the events. Informa and Hanley Wood collaborate on ideas to continually improve the events. Hanley Wood runs and sells certain specific activities at events such as the Brick Layer 500 at the World of Concrete event.

About:  For nearly 40 years Hanley Wood has provided indispensable news, analysis, and information for the residential and commercial design and construction industry through digital publications, newsletters, magazines, custom marketing solutions, tradeshows and events, and the most comprehensive market intelligence available.  Its audience of builders, remodelers, residential and commercial architects, multifamily and public-works executives, and materials dealers and distributors count on Hanley Wood for the information they need to make smarter and more informed business decisions.

Source:  Outsell Inc. and Hanley Wood Press Release