ITE expands Russian presence with US$44m MVK acquisition

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Emerging and developing markets specialist ITE Group has acquired international exhibition company MVK from its owners, a group of private shareholders.The total consideration is for €33m (US$44m), payable in cash on completion and funded from existing cash resources and agreed loans. According to an ITE spokesman, MVK’s event portfolio will both “broaden and strengthen” ITE’s core activities in the growth markets of Russia and the CIS.Moscow based-MVK owns 20 exhibitions including PolygraphInter, Rosupak, Euroexpofurniture and Woodex, and manages annual volume sales of more than 55,000sqm. The company’s largest annual exhibitions serve the furniture, packaging, pumps and measurement industries, while two biennial events serve the printing and woodworking industries. It also organises a number of smaller events focusing on industrial sectors including wood building, welding, labels and cables.“Moscow is home to our largest exhibitions and this deal will significantly expand our portfolio of events here,” said  ITE CEO Russell Taylor. “Business has remained robust despite the challenges of the economic downturn and with many of our Moscow-based events anticipating a return to growth in the near future; this development is well timed to build on the confidence that is currently evident in the Russian economy.”MVK had acquired gross assets of $5.08m at the time of the deal being signed, and reported gross profit before tax of $2.8m for the 2009 calendar year. The business performed strongly throughout 2010 and is expected to report gross profit before tax of approximately $7.33m for the 12 months to 31 December 2010. ITE believes the acquisition will boost ITE’s results within nine months of the takeover.Commenting on the acquisition ITE Moscow general director Alexander Shtalenkov said ITE Moscow will use its experience of organising major international trade exhibitions in Russia, and the Group’s network of domestic and overseas offices, to better promote and sell MVK’s events. “Stability and continuity are important,” he added, “I am delighted that the MVK staff and partners who have built up this business, and possess the expertise and knowledge of each event, are joining the company.”
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