dmg world media and GLM Forge Tradeshow Partnership

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Thursday 2 November 2000

dmg world media, the exhibition and related activities' division of DMGT, today announced a strategic partnership with George Little Management (GLM), the United States' largest privately-held tradeshow management company. Under the agreement dmg world media has acquired a 25 percent stake in GLM; GLM receives a management contract to produce North American gift shows, owned by dmg world media.

dmg world media has paid US$70 million for the 25 percent stake in GLM, the largest producer and marketer of tradeshows for consumer goods in the United States. As part of the transaction, dmg world media will also receive a preferred profit distribution of US$1.5 million for the first 5 years. The agreement includes 'put and call options' for the balance of the shares, which are capped. dmg world media will hold two seats on the GLM board and will acquire a further 26 percent of shares by 2010 and the remainder by September 2014.

This new partnership creates the largest business in the global gift tradeshow industry. The agreement provides a new platform, with huge access to market, which both companies will use to launch a range of services for the gift industry in North America.

GLM will manage dmg world media's gift shows in the U.S. and Canada, including twice yearly events in Los Angeles, Edmonton, Montreal, Toronto and Vancouver. GLM currently produces gift shows in Boston, Dallas, New York, Portland, San Francisco, Seattle and Washington, DC. Together dmg world media and GLM run 26 gift industry events across North America, attracting a combined total of 26,000 exhibitors in nearly 5 million net square feet of exhibition space and 450,000 attendees annually.

Mike Cooke, Managing Director of dmg world media said, "I am delighted we have been able to put together such a mutually beneficial deal with a company of GLM's stature. The deal enhances our presence in the gift industry, which is one of four core market sectors we are developing globally and specifically in North America, the largest and most important world market. This is a major step forward in our plans for growth in one of our key areas.

"Working together, we have the opportunity to develop this market for the benefit of the customers we serve by introducing new services which will bring even more buyers and sellers together. As one of our first priorities we will be looking at on-line services for the marketplace."

The initial tranche of consideration will be in cash and will be met out of existing resources. This follows the recent announcement that dmg world media will be refocusing its operations, and is offering for sale its Redhill operation, dmg business media.

GLM made an estimated EBITDA of US$ 18.1 million in the year ended 31 October, 2000 and had negligible net assets. The transaction is expected to be earnings enhancing, before amortisation of goodwill, for DMGT in the current financial year.

Inquiries to:
Mike Cooke, Managing Director, dmg world media 020 8515 2161
Peter Williams, Finance Director, DMGT 020 7938 6631