Canadian private equity firm Onex Corp. (OCX.TO) Monday said it has agreed to acquire Nielsen Expositions from its parent, an affiliate of Nielsen Holdings N.V. (NLSN), for $950 million cash.
San Juan Capistrano, California-based Nielsen Expositions operates business-to-business tradeshows in the U.S. The transaction is expected to close in the second quarter.
Kosty Gilis, an Onex managing director stated, "Nielsen Expositions' strength in the U.S. business-to-business tradeshow industry is evidenced by its high renewal rates, long-standing exhibitor relationships, and the brand strength of the underlying shows."
According to Onex, Nielsen Expositions produces more than 65 business-to-business tradeshows and conference events each year across nine diversified end-markets, including general merchandise, sports, hospitality and retail design, jewelry, and photography.
For full-year 2012, Nielsen Expositions had generated revenues of about $183 million and adjusted EBITDA of $97 million. It employs nearly 240 people.
David Loechner, president of Nielsen Expositions said, "We look forward to working with Onex to execute our strategic plan and to continue to grow the business to better serve the exhibitors and attendees who participate in our events, all the while providing a seamless, business-as-usual transition for our clients and associates."
Brian West, chief financial officer of Nielsen stated that divesting of Expositions business allows it to focus on its core areas and provide more flexibility to return capital to shareholders over time.
Onex' $4.7 billion private equity fund, Onex Partners III, will make an equity investment of nearly $350 million, of which Onex' share is roughly $85 million as a Limited Partner in the Fund.
On the Toronto Stock Exchange, the shares closed Friday's regular trading at C$49.60.
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