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GL events — M&A Activity 2018
Jun 14, 2018
1368_iss_2018-06-14_9097d54a-50ce-4ae3-bc24-348dcbb28ab4.pdf
M&A Activity
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ACQUISITION IN CHINA
GL EVENTS (ISIN: FR0000066672 - TICKER: GLO), ANNOUNCES THE STRENGTHENING OF ITS PRESENCE IN CHINA AND THE LATEST BUSINESS DEVELOPMENT IN ASIA AND FRANCE
SIGNATURE OF A MEMORANDUM OF UNDERSTANDING TO ACQUIRE A MAJORITY STAKE IN ZZX IN CHINA
As part of its development in Asia, GL events announces the signature of a memorandum of understanding, subject to condition precedents, to acquire the majority stake in a company specialised in event engineering and logistics and event organisation services in addition to providing innovative digital solutions.
This project is in line with the strategy for strengthening the Group's' presence in China, following the recent signature of the joint venture agreement with Yuexiu Group to manage the convention centre of Guangzhou. ZhongZhiXing Group's shows strong growth with revenue expected to reach €19 million in 2019, the year of its integration into GL events with an accretive operating margin for both the Live division and the Group.
ABOUT ZHONGZHIXING GROUP
ZhongZhiXing Group (member of the China Association for Exhibition Centres – CAEC – and Shenzhen Association of Exhibition Centres) was founded in 2016 by Mr. Wang Keqiang in Shenzhen, a major Chinese city soon to be home to the world's largest Exhibition and Congress Center SWECC) scheduled for opening in 2019. After 12 years of sustained growth ZhongZhiXing Group has developed into an event services provider of significant size in China.
With more than 200 employees in seven cities (Shenzhen, Nanning, Kunming, Chengdu, Dongguan, Zhuhai and Guangzhou), ZhongZhiXing Group boasts an excellent reputation in the MICE1 sector and close long-standing relationships with a number of exhibition organisers and owners of well-known event sites.
Over the last 12 years, ZhongZhiXing Group as successfully provided general contracting for more than 2,000 exhibitions such as: China ASEAN Expo, West Expo, World Expo, China Hi-tech Fair, Home Textile Exhibition, Automobile Accessories Exhibition, China Import and Export Commodities Fair, China International Battery Fair and China International Disposable Paper Expo.
ZhongZhiXing Group was awarded the "First Class" label by the CAEC for the design and creation of its stands. The Group has also obtained ISO certifications for its quality management (ISO 9001) and environmental management systems (ISO 14001).
1 Meetings, incentives, conferences and exhibitions
GL EVENTS MIDDLE EAST SELECTED AS GENERAL CONTRACTOR FOR THE 2018 ASIAN GAMES
As the biggest multi-sport games after the Olympic Games, the Asian Games are the most prestigious event organised by the Olympic Council of Asia, with the 18th edition to be held in Jakarta-Palembang, Indonesia from 18 August to 2 September 2018.
The Games will feature 463 events in 44 sports with 45 countries participating at 65 competition venues, supported by more than 13,000 volunteers on site.
On behalf of the Indonesia Asian Games Organizing Committee (INASGOC), GL events was selected as the General Contractor for the 18th Asian Games to provide overlay delivery for tents, barriers, containers, power, heating, ventilation and air conditioning, scaffolding, grandstands, media desks, interior fit-outs, and branding (look & feel, the event signature).
The Project Management team will involve between 120 and 150 people from the Group from 20 different countries, as well as more than 1,000 local workers involved in the preparation and execution of the different phases.
These contracts will generate total revenue of approximately US\$45 million.
THE FORMULA 1 RETURS TO FRANCE WITH GL EVENTS
For the F1's return to France, GL events teams will install grandstand seating capacity for 51,000 people for the next five editions of the Grand Prix at Le Castellet.
DEVELOPMENT IN THE HOSPITALITY SERVICES SECTOR
Profil bolsters its expertise in premium event and corporate hospitality services by integrating Allure Hôtesses, a Paris-based agency founded in 2001 which had €3 million in sales in 2017.
OUTLOOK
Within the framework of its development strategy in Asia and with a reinforced presence in large sports events, the Group confirms its annual guidance for revenue growth of more than 7% for 2018.
NEXT PRESS RELEASE: 2018 FIRST-HALF REVENUE– 18 JULY 2018 (AFTER THE CLOSE OF TRADING)
FOR MORE INFORMATION VISIT OUR WEBSITE AT GL-EVENTS.COM
About GL events: The Group is a world-class provider of integrated solutions and services for events operating across the three main market segments: conventions, conferences, congresses; cultural, sports and political events; trade shows / B2B and B2C
exhibitions and consumer fairs. GL events' activities are organised into three major business divisions. GL events Live offers expertise covering all business line specialisations and services for corporate, institutional and sports events to provide turnkey solutions from consulting and design to staging the event itself. GL events Exhibitions manages and coordinates the Group's portfolio of more than 300 proprietary trade fairs covering a wide range of sectors: food industry, culture, textiles/fashion, manufacturing… GL events Venues manages a network of 40 venues (convention and exhibition centres, concert halls and multi-purpose facilities) in France and international destinations. Present on five continents with operations in more than 20 countries, GL events has 4,300 employees. GL events is listed on Euronext Paris, Compartment B (mid caps).
INVESTOR RELATIONS MEDIA RELATIONS
Erick Rostagnat Tel.: +33 (0)4 72 31 54 20 [email protected]
Stéphanie Stahr Tel.: +33 (0)1 53 48 80 57