UBM Agrees to Buy Advanstar Communications for $972 Million
October 1, 2014
U.K.-based UBM has agreed to buy Advanstar Communications for $972 Million from hedge fund Anchorage Capital Group LLC and private equity companies Veronis Suhler Stevenson and Ares Management.
The deal will make it the largest trade show organizer in the United States.
“This is a great acquisition for UBM and its shareholders. In addition to being financially attractive, it strengthens UBM’s core events business, while balancing and complementing UBM’s strong events portfolio in emerging markets,” said UBM CEO Tim Cobbold.
He added, “UBM will become the largest events organizer in the US – the biggest events market in the world. Advanstar gives UBM a portfolio of high-quality, large-scale ‘must-attend’ events, which serve growing markets, particularly the U.S. fashion industry, a new vertical for UBM. I look forward to working closely with Advanstar’s CEO Joe Loggia and his strong management team in the coming months."
According to UBM, Loggia will continue to manage the Advanstar business within UBM and will report directly to Cobbold for a transitional period.
“We are pleased to be joining UBM and to be combining our highly complementary businesses, talented people and customer-focused cultures,” Loggia said. “With greater scale, as the largest organizer in the US, and with access to international markets, the combined company will be strongly positioned for continued growth.”
Advanstar serves the fashion, licensing, life sciences and powersports industries with its portfolio of 54 trade shows, 100 conferences, 30 publications, and nearly 200 electronic products and Web sites, as well as educational and direct marketing products and services.
It runs the two largest fashion shows in the U.S. – Magic Market Week – held biannually in Las Vegas.
Last year’s Magic Market Week in February was ranked No. 5 on TSNN’s 2013 Top 250 Trade Show List and drew 70,000 attendees to more than 1 million net square feet in several venues across the city.
The August show last year ranked No. 8 and had more than 66,000 attendees to 952,741 net sq. ft. of space.
The company also has 600 employees, with its headquarters based in Santa Monica, Calif., and offices throughout the U.S. and Europe.
Advanstar generates approximately $95 million annually in earnings before interest, taxes, depreciation and amortization.
Just more than a year ago was another large deal in the trade show industry, with Nielsen Expositions selling to private equity firm ONEX for $950 million and renamed Emerald Expositions.
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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