Tarsus Buys 65% Stake in China-based Hometex – Home Textiles Show for $23.8 Million

December 22, 2016

Tarsus Group has made another acquisition this month and its second recent acquisition in China, with a 65-percent stake of Foshan Huaxia Home Textile Development Co., Ltd. ("Foshan Huaxia") from the Guangdong Home Textile Association and Association Member shareholders.

Foshan Huaxia owns the Home Furnishing Expo (Hometex), the leading biannual home textiles exhibition in China.

The acquisition of 65 percent of Foshun Huaxia was made for an estimated cash consideration of RMB174m (approximately £19.3m and $23.8 million).

"Following the recent acquisition of Intex in Shanghai, we are delighted to be acquiring Hometex in Shenzhen,” said Douglas Emslie, Tarsus managing director.

He added, “These are the two key trading hubs in China for Tarsus and we now have four of the largest exhibitions in Shenzhen. These acquisitions will further deepen our exposure to industries benefiting from the strong shift towards domestic expenditure that is underway in China, which is the second largest exhibition market in the world.

Hometex was launched in 1997 and takes place biannually in the spring and autumn each year in Shenzhen. The next edition of the event will be held in March 2017, which already has a waiting list.

The spring edition, the larger of the two events, occupies all of the available venue capacity, approximately 1.14 million square feet (106,000 square meters in 2016) of gross space.

With the event’s successful growth, the new exhibition center planned for Shenzhen allows for potential expansion to take place from the 2019 edition onwards.

The initial phase of the venue will see it triple in size to 3.2 million sqaure feet  (300,000 square meters), a size that could potentially benefit the wider Tarsus portfolio, according to company officials.

The home furnishings market is now the fourth highest sector of family consumption in China. Guangdong province itself accounts for more than 50 percent of the Chinese home furnishing market by value.

The Hometex brand has strong industry backing with one of the original shareholders being the Guangdong Home Textile Association. The Chinese Chamber of Commerce for textiles also has a long-term partnership with Hometex.

"Hometex is the dominant home textile event in China and the new exhibition centre in Shenzhen offers a significant organic growth opportunity,” Emslie said.

He added, “Hometex will work closely with our housewares and home interiors events in Istanbul and Jakarta to exploit the synergies between each of them to grow, broaden and internationalise the events. This represents a strong step forward in our Quickening the Pace growth strategy."

The acquisition is subject to normal governmental approval in China and is expected to complete in the first quarter of 2017, before the spring event.

The remaining 35 percent of the shares in Foshan Huaxia will continue to be held by the Guangdong Home Textile Association and Association Member shareholders, who are also exhibitors at the events. The existing management will also remain in place.

Besides Intex and Hometex, Tarsus also bought an 80-percent stake in Atlanta-based Connect, an events and publishing portfolio serving the meetings and exhibitions industry, earlier this month.

Add new comment

Partner Voices
One of the most iconic names on the Las Vegas Strip just got an upgrade. Mandalay Bay has everything that your business needs from a refreshed convention space designed to inspire productivity and creativity, to an impressive selection of world-class restaurants and amenities. If you're looking for a venue that's both inviting and innovative, you have to be here. New Wave Experiences Mandalay Bay continues to invest in a new wave of enhancements both in the convention space and within the resort as a whole. New restaurant openings including Orla by Michael Mina, drawing inspiration from the award-winning chef’s childhood in Egypt and with flavors and décor inspired by the spices found in markets common to coastal Mediterranean towns, as well as Caramá by Wolfgang Puck, bringing the essence of Italy and spirit of Wolfgang into one concept, are recent additions. The Four Seasons Hotel Las Vegas also experienced a recent remodel of all 424 rooms. Swingers, a high-end, adults-only golf and entertainment concept will debut in Fall 2024. Enhanced Technology Creating a truly effective conference venue requires careful thought into what a business needs: the right technology, capacity, and inspiration to bring ideas to the next level. As part of the resort’s refresh, Mandalay Bay implemented state-of-the-art technology upgrades, installing cutting-edge Cat6A Ethernet cabling throughout the convention center. This advancement doubles the frequency of data transmission, enabling lightning-fast speeds up to 9400% faster. The convention center now boasts 11 dynamic digital walls, spanning up to 24' x 13', strategically positioned for brand placements, sponsorships and targeted event messaging. Additionally, attendees can benefit from 20 double-sided 55" mobile flexible display units, facilitating effortless navigation to meeting rooms and events. RFID locks were installed on all meeting room doors, and over 200 motion detection cameras have been placed throughout the space. Refreshing New Design & Fine Art The newly remodeled convention space provides a bright and vibrant atmosphere that complements Mandalay Bay's tropical-inspired brand. Featuring white-washed walls and ceilings adorned with bold floral patterns in cerulean and coral tones, the space is complemented by warm walnut accent walls. In addition to the redesign of all pre-function spaces, meeting rooms and ballrooms, Mandalay Bay's 1 million square feet of exhibit space has undergone a rejuvenation, including new paint, covered pillars and relocated strobe lights. Sustainable Spectacles Mandalay Bay is committed to Focused on What Matters and creating more responsible meetings. Refillable water stations all available around the resort, cutting unnecessary plastic usage from single-use bottles. The Mandalay Bay campus’ recent upgrades represent a bold step forward in redefining the Las Vegas experience. With a focus on innovation, sustainability, and unparalleled service, Mandalay Bay sets a new standard for excellence in business hospitality. Whether you're seeking cutting-edge conference facilities, world-class dining options, or simply a luxurious retreat, an unparalleled meeting experience awaits.