The consideration will be financed out of the Group’s existing balance sheet and the acquisition is expected to be earnings enhancing in the first full year of ownership.
The Sellers, who are the original founders of the business, will retain the remaining 50% of the shares and will continue to manage the business.
DUBM owns the Indobuildtech exhibitions which serve the building and construction industries in Indonesia and the surrounding region. The largest event is held in Jakarta in June each year and is the leading event of its kind in Indonesia. The 2013 exhibition was the 11th edition which sold approximately 12,000m2 net and was attended by over 33,000 professional visitors. The upcoming event opens in the Jakarta Convention Centre on 11th June 2014. In addition, satellite events are held in Surabaya, Bandung, Makassar and Bali.
ITE has an established portfolio of Build events in Russia, CIS, Turkey and through its associate company ABEC, in India.
Commenting on the acquisition, ITE’s Chief Executive Officer, Russell Taylor, said:
“Indobuildtech is the leading building exhibition in Indonesia. The addition of this exhibition to ITE’s Build portfolio is consistent with our strategy of building market leading positions in core markets and sectors. The building industry is a growth sector in developing markets and with this complementary acquisition, ITE will leverage its international exhibition expertise to develop further its position and benefit from a strengthened portfolio within this sector.”