UBM Acquires 70% of Catersource for $5m
The acquisition was made on behalf of UBM Live.
Catersource will become part of UBM Live, by adding portfolio of events that serves the Food & Leisure industries both in the USA and internationally. The portfolio includes brands such as Cruise Shipping, Food Ingredients, Health Ingredients, Leisure Industry Week and Confex.
Catersource was founded in 1982 and is based in Minneapolis. It hosts an annual conference and exhibition for the USA catering and event planning industry, as well as awards, events and supporting print and digital marketing platforms.
Michael Roman, founder of Catersource, and his partner Kelvin Lee, with 13 employees, will remain with the business following completion of the acquisition.
In 2010, Catersource has reported revenue of approximately $4m. It serves both the institutional and private segments of the catering industry.
Simon Foster, CEO of UBM, said: â€œThe acquisition is expected to meet UBMâ€™s cost of capital hurdle rate in its first full year of ownership. Catersource is the leading events business in the fast-growing US catering industry. We see strong opportunities to grow the brand by leveraging our US and worldwide events infrastructure, as well as driving synergies with other UBM events.
â€œWe are delighted that Kelvin Lee, Mike Roman and their team will be joining UBM Live and look forward to working with them to develop the business going forward.â€
In May 2011, UBM has acquired the business and assets of AMB Exhibitions and AMB Events in Malaysia, Vietnam and the Philippines, on behalf of UBM Asia.
UBM informs markets and brings the buyers and sellers together at events, online, in print and provides them with the information they need to do business successfully. It focuses on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists around the world.
Will the acquisition commercially benefit UBM?
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