Tarsus acquires 60% stake in Sada the organisers of Komatek in Ankara.
Established in 1967 and based in Ankara, SADA organises a single event – Komatek – which was first held in 1991. This biennial (odd years) show is Turkey’s largest trade exhibition for construction equipment and related products. The last edition was held in May 2013 at the Ataturk Centre in Ankara with combined indoor and outdoor net space of 53,200m2. Over 400 exhibitor companies were present and visitor numbers, at approximately 35,000, were 9% higher than the 2011 event.
Komatek is the largest construction equipment exhibition in Turkey and one of the largest events in Europe. With US$1.0 trillion worth of major construction and investment projects expected to be completed in Turkey between now and 2023, the Group expects strong growth in Turkey’s construction market over that timeframe.
SADA’s management team has delivered strong performance to date and will continue to run the business post-acquisition. The exhibition also enjoys support from a key industry association.
The purchase of Komatek further strengthens Tarsus’ position in the Turkish market and adds scale to our Ankara operations. The city’s importance as an exhibition centre is expected to increase when the new Akyurt venue has been built, which is anticipated in 2015. Additionally, the Group believes there are synergies with Tarsus’s CYF business, which owns Yapi Decoor (a building interiors event) and the Group’s infrastructure event in Indonesia.
Unaudited revenues at Komatek in 2013 were TL3.3m (approximately £0.9m). Tarsus will pay an initial TL5.0m (approximately £1.4m) on completion and two additional payments contingent on the profit performance of the 2015 and 2017 events. The total consideration for 60% of SADA is capped at TL20.0m (approximately £5.6m).
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