Tarsus Group Buys 50-percent Stake in Asia's Largest Automotive Aftermarket Exhibition
Tarsus Group made further inroads to achieve its goal of having 50 percent of its annual revenue derived from emerging markets by 2013 with the purchase of a 50-percent stake in the China International Automotive Aftermarket Industry and Tuning (Guangzhou) Trade Fair (“GZ Auto”) and other associated business assets.
The joint venture was made with Jiuzhou Media & Exhibition International Group, the show’s organizer, and is subject to regulatory approval in China and certain other conditions and is expected to be completed within the next three months.
“GZ Auto is an excellent fit with our strategic objectives of expanding our business in emerging markets and in a market sector that is in transition,” said Douglas Emslie, Tarsus Group's managing director.
He added, “GZ Auto has grown quickly to become the largest exhibition in the Auto Aftermarket sector in China. We are excited by the opportunity to continue to drive organic growth from this product both in China and internationally.”
Tarsus will pay £11.2 million ($18 million) for its stake in the show, with £7.2 million ($11.6 million) payable in 2012 and the remaining sum payable in 2013 and 2014, subject to the achievement of certain profit targets related to future performance.
The Transaction will be funded from Tarsus Group’s existing cash resources and available bank facilities.
GZ Auto located in Guangzhou, a manufacturing and trading hub with links to the rest of China, Hong Kong and Southeast Asia.
The JV provides Tarsus with exposure to the rapidly growing automotive industry in China, which overtook the United States in 2009 as the largest consumer of new automobiles, according to Tarsus officials.
The February 2012 edition of GZ Auto was the eighth one of the event organized by Jiuzhou Media and the show attracted 1,200 exhibitors occupying 60,000 net square meters (645,834 net square feet) at the China Import & Export Fair Complex.
The main exhibitor sectors are: car audio and electronic equipment, interior and exterior decoration, modification and car care products and auto parts.
Visitors predominantly are auto retailers and wholesalers.
GZ Auto is the latest in a string of acquisitions made by Tarsus Group to expand its emerging markets portfolio.
“This transaction is a further important step towards achieving our Project 50/13 objective of deriving half our revenues from emerging markets in 2013, following the Life Media deal in Turkey announced in March,” Emslie said.