LONDON (Alliance News) - Media company Tarsus Group PLC Monday said it has bought the whole of HealthScienceMedia Inc. in the US and 60% of SADA Uzmanlik Fuarlari A.S. in Turkey, giving it control of the largest cardiometabolic event in the US and Turkey's largest construction equipment trade exhibition.
The exhibitions, publishing and online media company also said it intends to place 5.0 million new shares at 200 pence each to raise gross proceeds of GBP10 million, using the funds to maintain the strength and flexibility of its balance sheet in the wake of the new acquisitions.
The company is buying HealthScienceMedia for USD14 million, or about GBP8.5 million, including an initial cash payment of about GBP6.1 million. The rest is payable in two separate tranches in 2014 and 2015. It is paying a maximum of about GBP5.6 million for SADA, including an initial payment of about GBP1.4 million.
"Taking into account the acquisitions announced this morning, the group's gearing is likely to rise above the Board's preferred and more conservative target of 1.5 times net debt:EBITDA," it said in a statement.
The principal asset being acquired from HealthScienceMedia is the Cardiometabolic Health Congress, the largest US event focused on the cardiometabolic field. It is an annual congress which began in 2006 and is held over three days each October in Boston.
HealthScienceMedia made profits of USD2.0 million on revenues of USD3.5 million in 2012.
SAD, meanwhile, organises a single event: Komatek. This biennial show is Turkey's largest trade exhibition for construction equipment and related products. Komatek made revenues of about GBP0.9 million in 2013.
"The two acquisitions are further steps in the execution of our "Quickening the Pace" strategy. Both are exciting events in markets where we have established a strong presence and which we believe are likely to show further growth," Tarsus Managing Director Douglas Emslie said in a statement.
"Our focus will be on the effective integration of both businesses as cornerstones of our future organic growth. Cardio will bring greater access to the important US market for our wider medical division and Komatek delivers critical mass to our construction events in Turkey and Indonesia," he added.
The companies expects the acquisitions and placing together to add to its 2014 earnings.
Tarsus shares were down 2.3% at 207.625 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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