UBM Acquires Business Journals Inc. for $69 Million
April 22, 2016
UBM added more than a few dozen shows to its fashion portfolio in the United States with the acquisition of Business Journals Inc. for $69 million in cash.
“We are delighted to have acquired BJI. This transaction is very much in line with our ‘Events First’, strategy,” said Tim Cobbold, CEO of UBM.
He added, “It adds to our presence in North America and also in the fashion sector, both of which were already strong following UBM’s acquisition of Advanstar at the end of 2014. We see excellent opportunities to deliver an improved experience for customers and to realize the operational benefits which scale will bring.”
BJI serves the men’s and women’s apparel and accessories markets with several brands that include AccessoriesTheShow, EDIT, FAME, Moda, MRket and Stitch.
“UBM Americas is the perfect home for BJI’s hallmark brands. The complementary nature of our portfolios and teams will undoubtedly create opportunities for growth and a better overall experience for our brands and retailers,” said Britton Jones, president and CEO of BJI.
He added, “I am excited by this union and confident that together we will craft the future of events for the fashion industry. This is a great day for our customers, our industry and for BJI.”
In total, the BJI Fashion Group runs 21 shows annually at the Jacob K. Javits Convention Center in New York and six shows per year at the Sands Expo Convention Center in Las Vegas.
BJI also publishes three trade magazines including MR (Menswear Retailing), the world’s largest menswear business-to-business magazine and Accessories, which has been the leading publication of the women’s fashion accessories market for over 100 years.
In addition, BJI has a 54 magazine custom publishing division, seven web sites, and maintains one of the industry’s largest databases of fashion retailers.
In 2015, BJI’s revenues were approximately $33 million-$40 million from events and $7 million from other marketing services.
BJI fits neatly into to UBM’s existing fashion tradeshow portfolio, which includes the massive biannual MAGIC Market Week collection of shows in Las Vegas.
The combination of BJI and UBM will provide an improved experience for both attendees and exhibitors and generate material synergies in areas such as event operations, property and cross-marketing opportunities, according to UBM officials.
UBM Americas has 12 of the 2015 TSNN Top 250 trade shows on the list, including MAGIC Market Week and Medical Design & Manufacturing West.
BJI is expected to make a modest post tax contribution this year. In 2017, with a full year of contribution and strong operational and financial synergies, the acquisition will achieve a return on investment in excess of UBM’s weighted average cost of capital.
JEGI, a New York City-based investment bank for the global media, information, marketing, software and tech-enabled services sectors, represented BJI in this transaction.
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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