Media Fortune Fame & Folly

Hyve buys US retail shows

UK-based exhibitions organiser Hyve Group plc has bought two US trade shows Shoptalk and Groceryshop for $145m (£110.8m). The events this year generated a total $35.8m revenue and $12.2m EBITA. They had over 11.500 attendees from over 50 countries, and 880 exhibitors.

The deal is being funded by the issue of equity to the vendor (£12.8m), additional debt (£45.6m) and a placing of new shares (£52.4m). 

The shows were launched by the founders of Money 2020 (acquired by Ascential Plc), Anil D. Aggarwal and Simran Rekhi Aggarwal. They will join Hyve and become shareholders.

Hyve Group was formerly known as ITE Group until its rebranding three months ago. The 28-year-old company, which organises more than 120 events in 14 countries and employs over 1,200 people, is one of the world’s 20 largest exhibition organisers.

The listed company has a market cap of £700m and recently reported annual revenue of £220.7m (+7% like-for-like) and EBITDA of £50.4m (+16%).

More significant, however, has been the change from an exhibitions group which in 2017 generated 47% of its revenue from Russia and 14% from Central Asia, notably Turkey. By this year, those stats had shifted to 28% and 9% as Hyve digested important acquisitions especially in the UK which now accounts for 22% of revenue (2017: nil).