The purchase price is £5m million in cash. Theme and Bar Show generated £2.1m of revenue and £0.6m of EBITA in the year to end of June 2004. The proposed acquisition should be earnings enhancing in its first 12 months and is expected to exceed UBM's hurdle rate of return in its first year. The transaction is subject to approval by the OFT.
These businesses will report into Bernard Gray, CEO of CMP Information (CMPi) and United Advertising Publications (UAP). Gray said: "These leading publishing assets will give further breadth and depth to the range of specialists products available to our clients. The financial case is attractive and we have identified operating efficiencies and the opportunity to develop new and existing revenues streams."
UBM CEO David Levin, said: "These assets represent another good "bolt on" opportunity for UBM, allowing us to further consolidate our chosen markets. The transaction meets our strict financial criteria and moves forward the implementation of our continuing strategy."
(Lee Baldock)
