Tarsus Group has announced a multi-million dollar deal to sell its French exhibition and conference portfolio, as the group ramps up plans to focus on the US and emerging markets.
A new vehicle set up for the deal, Magellan VI SAS, will buy 100 per cent of Tarsus France Holdings SAS for €9.2m (US$10.18m). The private company is owned by Tarsus France president Romauld Gadrat and Claire Gadrat controlling a majority holding and just under 50% held by private equity concerns.
Tarsus’s French portfolio includes education, marketing, IT and MICE conferences and exhibitions. It generated €0.9m profit and had gross assets of €24.7m for the year ending 31 December 2014
Douglas Emslie, group managing director of Tarsus, said: "Since 2010 we have reshaped the group's portfolio to target a greater exposure to the US and emerging markets.
“In 2009, 53 per cent of the group's revenue was generated in these markets and we expect this to increase to 85 per cent in 2015 on a pro-forma basis.
As previously reported in EW, the deal comes less than two weeks after Tarsus launched a joint venture to expand its reach into south east Asia, with shows in Cambodia, Malaysia and Myanmar.
"Our Quickening the Pace strategy has seen us increasingly focus on economies we believe offer the best opportunity for growth,” Emslie said.
“The disposal of our French business will allow us to recycle capital and continue to invest in these higher growth economies."
Tarsus officials said the deal was expected to be “modestly dilutive” to its earnings per share in the current and future financial years. Proceeds from the sale would be used to strengthen its balance sheet and fund future growth.
The company will receive €7.2m in cash on completion and a deferred payment of €2.0m is expected before 31 December 2016.
The deal supersedes a 2014 agreement to sell 18 per cent of the French business to CRG Consulting SAS.
