IEG acquires HBG Events for USD 1.1 million
22 September 2020: Merger & Acquisitions (M&A) have now become a common trend in Events and Exhibition Industry globally and for a couple of years consolidation has been taking place in the industry. The recent newsmaker is the Italian Exhibition Group S.p.A. (IEG). The Italian leading international trade fairs organiser, managed by Borsa Italiana S.p.A., has acquired UAE based HBG Events FZ LLC for a total value of USD 1.1 million, according to an official communiqué. Leading global law firm Baker McKenzie advised IEG in relation to the purchase of the entire share capital of HBG. The acquisition is part of the internationalization and development strategy of the “Wellness, Sport & Leisure” products in which IEG is a leader in Italy with the Rimini Wellness event, IEG said in a statement.
HBG Events is an Exhibition Organization and Management, Sports Management and E-Commerce company. It has organized the co-located events “Dubai Muscle Show” and “Dubai Active,” which together form the largest fitness event in the Middle East, since 2016. Under the legal advice, IEG has executed a binding agreement for the purchase of 100% of the company HBG Events FZ LLC.
HBG closed 2019 with revenues of Dirham 6.1 million (equivalent to approximately Euro 1.5 million at the exchange rate of 31/12/2019). The value of the acquisition was set at a guaranteed minimum of USD 1.1 million to be paid at the time of sale, plus an earn-out connected to the results of the next two editions of the “Dubai Muscle Show” and “Dubai Active” events, to be paid within 80 days from the end of each edition. The acquisition is financed using the company’s liquidity.
The next edition of the Dubai Muscle Show and Dubai Active is scheduled from 14 to 16 January 2021 at the Dubai World Trade Centre.
IEG is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in Milan and Arezzo. The IEG Group is notable in the organisation of events in five categories: Food & Beverage; Jewellery & Fashion; Tourism, Hospitality and Lifestyle; Wellness, Sport and Leisure; Green & Technology. In the last few years, IEG started a significant expansion process abroad, also through the conclusion of joint ventures with local operators (for example, in the United States, Arab Emirates and in China).