Tarsus Group Buys Remaining 50% Stake of E.J. Krause in Mexico; Announces Other Deals
U.K.-based Tarsus Group has bought the remaining 50 percent share of its joint venture in Mexico with E.J. Krause for approximately $18 million, as well as announcing other deals in Southeast Asia and the United Arab Emirates.
With the option to buy exercised, the Mexico deal is expected to close the first week of October.
“Mexico is a large and fast-growing market, and this agreement to acquire the remaining 50 percent interest in EJK Tarsus Mexico, thereby assuming full control of the Mexican business, represents an excellent opportunity for the Group to accelerate its growth,” said Douglas Emslie, Tarsus Group managing director.
Shows in the portfolio include Expo Manufactura, Plastimagen and Expo Produccion.
“We are going to continue to work with Tarsus,” said Ned Krause, CEO of E.J. Krause. “It’s our intention to stay in the Mexican market, … but not in a competitive way. Perhaps buying other properties with Tarsus.”
Tarsus Group and E.J. Krause still own a 60% share of Expo Restaurantes.
Krause added the main reason for the divestiture of E.J. Krause’s Mexico division was so that the company could focus on expanding in the U.S,. where it has shows in the food and bike sectors, as well as overseas in China, Japan, Korea and Thailand.
E.J. Krause will be launching a new show in Thailand, for example, in the non-wovens sector - Southeast Asia Nonwovens and Disposable Hygiene Technology Exhibition & Conference (ANDTEX) – next May in Bangkok.
Besides the deal in Mexico, Tarsus also said it would expand its stake in AMB Tarsus Exhibitions Sdn. Bhd. in South East Asia by 25 percent, taking its overall interest to 75 percent.
In addition, Tarsus has formed a strategic partnership with Streamline Marketing Group in the UAE where it runs major events such as the Dubai Airshow.
To fund these investments, Tarsus Group placed approximately 8.9 million new shares at a price of 270p ($3.53).
"These deals represent an exciting expansion in three of our key territories. In line with our ‘Quickening the Pace 2’ strategy we continue to buy in minority interests where there is a compelling business case to do so,” Emslie said.
He added of the AMB expansion, “Through our AMB joint venture Tarsus has successfully expanded its footprint in South East Asia. Our acquisition of a further 25 percent interest in the business allows Tarsus to take control of the operation whilst also retaining the existing entrepreneurial management who will continue to run the business day to day.”
Emslie said. “I am also excited by the prospect of continuing to work with Andrew Siow and the AMB team in South East Asia. Andrew is a very experienced exhibition professional with over 30 years' experience launching in the region.”
Regarding the SMG new partnership, he added, “The agreement to enter into a strategic partnership with SMG in the UAE represents a good bolt-on opportunity to our existing aerospace portfolio. I look forward to working with the SMG team to grow the business going forward."