UBM makes acquisitions in Brazil for exposure to growing economy, Olympics, World Cup

United Business Media (LON:UBM) has made three acquisitions to expand its business in Brazil and capitalize on “rapidly expanding” Latin American economies, particularly giving it exposure to the substantial investment in infrastructure construction in the region and “one of the fastest growing maritime markets in the world.”

The company acquired a 75% stake in Sao Paulo based exhibition company Sienna Interlink, a 60% interest in Brazilian shipbuilding industry tradeshow and conference Navalshore and the remaining 62.03% interest in PR Newswire Brazil.

Sienna Interlink's main asset is the region's largest concrete industry tradeshow Concrete Show South America, which serves suppliers of concrete and cement equipment and machinery, building systems, materials, additives, tools and related services. This year's show is expected to attract around 20,000 professional attendees and more than 400 exhibitors occupying more than 33,000 square metres of exhibition space.
The show, along with Interlink’s other owned show Restaubar Show, generated revenues of US$4 million in 2009. UBM added that the acquisition also gave it exposure to the concrete market, benefiting from significant construction activity taking place ahead of the 2014 FIFA World Cup in Brazil and the 2016 Rio de Janeiro Olympics.

Navalshore is an annual tradeshow for the maritime industry in Brazil, which is held in Rio de Janeiro. The show brings together suppliers of marine and shipbuilding technology, products and services with shipbuilders, subcontractors and companies ordering new ships. The 2009 edition of Navalshore attracted more than 250 exhibiting companies and over 12,600 maritime engineering industry visitors, generating revenues of around US$700,000. The event will be complementary to UBM’s largest Brazilian show, Intermodal, which has a strong maritime transport component.

UBM said that Brazil’s maritime market was among the fastest growing in the world.

The acquisition of the remaining stakes in PR Newswire Brazil cost the company US$1.2 million in cash and a performance-related consideration of US$0.2 million, payable over 2 years. UBM has also acquired the remaining 10% interest in PR Newswire Argentina for US$40,000.