Euromoney is consolidating its leadership position in the global metals and mining sector with the acquisition of the trade and certain assets of the Mining Investment Events Division of US-based Summit Professional Networks.
The principal asset being acquired is the leading investment forum and trade event for African mining, the Investing in African Mining Indaba. Set up 20 years ago, Mining Indaba is an annual professional conference dedicated to the investment in, and development of, mining interests in Africa. It is the world’s largest mining investment forum and Africa’s largest mining event. It takes place every February in Cape Town, South Africa, and attracts over 7000 of the most internationally-diversified and influential professionals in African mining. Senior Vice-President and Managing Director, Jonathan Moore, will join Euromoney and run the business from Euromoney’s New York office.
The cash consideration for the Acquired Assets is £45.3 million, funded from Euromoney’s existing committed borrowing facilities. The acquisition is expected to be earnings enhancing for the financial year to September 30, 2015, the first year the event will be run under Euromoney’s ownership. However, due to the timing of the conference, the acquisition is expected to reduce Euromoney’s adjusted operating profits for the year to September 30, 2014 by approximately £1 million. The Acquired Assets achieved an adjusted EBITDA (before allocation of Summit central costs) of £6.2 million for the year to June 30, 2014, and the gross assets were £1.7 million at June 30, 2014, according to the division’s pro-forma management accounts.
Euromoney already has a strong presence in the commodities markets and with investors, in particular through its Metal Bulletin and Institutional Investor brands^. The acquisition provides Euromoney with an excellent opportunity to expand its position in these markets. The overlap with Euromoney’s existing portfolio of online publishing activities and investment conferences will allow Euromoney to develop and grow Mining Indaba as well as position it to capitalise on an upturn in the $1.2 trillion global metals and mining sector.
Euromoney has a strong record of delivering revenue synergies from acquisitions. The transaction gives the group access to an extended international customer base of upstream and downstream commodity providers, traders, asset managers, alternative investors and African government ministries. Euromoney will also invest in the event to deliver benefits from its marketing and technology platforms, its expertise in emerging markets, and its international network to accelerate its growth outside Africa.