ITE buys Breakbulk

ITEITE Group plc, (“ITE”) the international exhibitions group, today announces that its wholly owned subsidiary, ITE Enterprises Ltd, has acquired Breakbulk Holdco UK Ltd and its subsidiary companies from Electra backed, AXIO Data Group for a maximum consideration of $42m (c.£26.8m).

Breakbulk consists of a series of leading exhibitions, serving the transportation and logistics market for large scale project equipment, which are held annually in Houston, Antwerp, Shanghai, Johannesburg, Istanbul and Sao Paulo. In addition, the acquisition brings to ITE a magazine in print or digital format with expanded industry coverage along with its exhibition websites which serve the global breakbulk community.
The transaction is financed out of the Group’s existing cash and bank facilities and is expected to be earnings enhancing in the current financial year. Out of the total consideration of c.$42m, $40m was paid on completion with the balance payable once Breakbulk’s results for the period ended 31 December 2015 are available. The value of the gross assets being acquired is around $14m. The total profits generated by the assets acquired in the period ended 31 December 2013 was $2.6m. The Group anticipates that the purchase price equates to circa 8.5x expected FY15 EBITDA.

Breakbulk’s main events take place in Shanghai in March, Antwerp in April and Houston in October. Forward bookings for these 3 events for FY2015 are currently c90% of budget.

The current management team including Breakbulk’s Managing Director, Alli McEntyre will stay with the business.

Commenting on the acquisition, ITE’s Chief Executive Officer, Russell Taylor, said:

“ITE is continuing to build businesses in strategically important industry sectors and the acquisition of Breakbulk increases our presence in the global transportation and logistics sector. This complementary move represents progress in achieving the Group’s ambitions to expand its operations in markets and geographies with further potential for growthas well as continuing to diversify the geo-political risk in our portfolio.

I am delighted that Alli and her team will be joining ITE to strengthen our presence in the transport and logistics sector.”