Exhibition organiser ITE Group has bought a controlling 51% stake in Turkish organiser Sodeks Fuarcilik for an initial cash consideration of USdollars 1m.
Further payments will be made based on valuing the company at five times the average pre-tax profits for the two years to 31 December 2002. The limit is capped at dollars 5m (pounds 3.33m).
The company organises three shows in Turkey, the biggest of which is Sodeks. The biennial event covers air-conditioning, heating, refrigeration, plumbing, sanitary installations and bathroom fittings.
'The acquisition of Sodeks not only adds this premier exhibition to our roster of Turkish events but also brings further experienced management to our group,' ITE chairman Lawrie Lewis said. 'The exhibition themes fit into our building and construction portfolio and we will be looking to add further international sales to these events.'
Sodeks Fuarcilik will be hosting household appliance show Sodeks-Antalya and electronic show Datex-Konfor during 2001.
In October ITE bought a 51% stake in exhibition companies Intermedia and SEACE. This recent move continues ITE's intention to take controlling interests in companies across the globe.
'We want to broaden ITE's activities out from just being purely exhibitions and get involved in other business to business areas of emerging vertical markets,' said ITE chief executive Nigel Stapleton.
See Interview, page 25.