REG - Informa PLC - Acquisition of Winsight

InformaAnnouncement

18/05/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230518:nRSR8591Za&default-theme=true

RNS Number : 8591Z  Informa PLC  18 May 2023

 Informa LEI: 5493006VM2LKUPSEDU20

Informa PLC Press Release

18 May 2023

Informa further strengthens position in the specialist B2B Foodservice market
through the acquisition of Winsight

Addition enhances Group earnings and establishes another scale B2B business
with category leadership, international reach and multi-service B2B offering

Informa (LSE: INF.L), the international Academic Markets, B2B Markets and
Digital Services Group today announces the addition of specialist B2B Events,
Data and Media Group, Winsight for $380m.

 Stephen A. Carter, Group Chief Executive, Informa, said:

 ÓFollowing on from the acquisition of Tarsus, we are delighted to further
 expand our B2B portfolio through the addition of Winsight. Alongside
 Technology, Life Sciences and Aviation, this now adds Foodservice to our
 roster of category leading B2B businesses with scale, international reach and
 an increasingly diversified service offering spanning Live & On-Demand
 Events, Specialist Data/Research, Specialist Media and related B2B Digital
 Services.Ó

 He added:

 ÒThis acquisition is fully funded by in-year cash flow growth and our balance
 sheet, and will further enhance revenues, margins, earnings and cash flow.Ó

Key Highlights

á      Expansion in B2B Foodservice category...The combination of
Winsight with InformaÕs existing B2B Foodservice portfolio brings together
leading specialist brands in Live & On Demand Events (National Restaurant
Association Show, FSTEC, Catersource, CREATE), Specialist Data & Research
(Technomic, NationÕs Restaurant News Intelligence) and Specialist Media
(Restaurant Business, CSP, NationÕs Restaurant News, Supermarket News);

á      Strong financial returns...Initial enterprise value of $380m
implies post-synergy multiple of c.9x EV/EBITDA, delivering earnings accretion
from the outset and a post-tax return ahead of InformaÕs long-term WACC in
the first full year of ownership;

á      Depth in growing B2B Markets...The Foodservice market is large
and growing, characterised by a fragmented supply chain and high levels of
innovation. The combination will create a category leader offering a range of
specialist B2B services, generating annual revenues of $115m+ in the US alone;

á      Growth acceleration...Combination expected to create operating
synergies through areas such as procurement, real estate, technology and event
contracts, as well as incremental revenue opportunities through the
cross-marketing of major brands, international sales and digital expansion;

á      First Party Data...InformaÕs first party data engine, IIRIS
(17m+ KEMA) to directly benefit from WinsightÕs close relationships with
Exhibitors, Attendees and Subscribers, adding an estimated Known, Engaged,
Marketable Audience (KEMA) of up to 1 million;

á      Ongoing balance sheet strength...Pro-forma leverage now expected
to be around 1.25x net debt / EBITDA at year end, retaining ongoing
flexibility for organic investment, shareholder returns and further targeted
expansion.

 

Expansion in the B2B Foodservice category

Informa has reached an agreement to acquire Winsight, the leading specialist
B2B Events, Data and Media Group for the Foodservice market, for an initial
enterprise value of $380m, payable in cash.

The combination with InformaÕs existing portfolio in Foodservice is both
commercially and financially compelling, significantly enhancing our position
in a large, growing and fragmented market and delivering strong returns for
shareholders.

The Winsight business: leading B2B brands for the Foodservice market

The company provides a range of specialist B2B Services to the $3 trillion
Foodservices industry, including:

á      Live & On-Demand B2B Events: It operates a range of
specialist B2B Events, including the flagship National Restaurant Association
Show (www.nationalrestaurantshow.com (http://www.nationalrestaurantshow.com) )
the largest annual marketplace for foodservice professionals in the world. A
Top 20 TSNN Exhibition brand in the US, the show attracts 30,000+ attendees
and 1,800+ exhibitors annually, and will further expand InformaÕs portfolio
of 85+ Tier 1 brands. Other B2B Event brands include FSTEC and the Restaurant
Leadership Conference;

á      Specialist Data & Research: Through Technomic
(www.technomic.com (http://www.technomic.com) ) which was founded in 1966, it
provides specialist foodservices data and insights, including the largest
historic food service dataset and most respected industry forecasts.
Additionally, it provides strategic consulting and advisory services to the
industry.

á      Specialist Media: It also owns a range of specialist media brands
and proprietary digital media platforms (www.winsightmedia.com
(http://www.winsightmedia.com) ), providing specialist news and insights on
all segments of the market and targeted lead generation for both supply-side
and buy-side customers. Key media brands include Restaurant Business, Grocery
Business, CSP and Food Service Director.

WinsightÕs revenue is generated almost entirely in North America, where it
has a team of more than 300 Colleagues, largely based out of Chicago and
Washington DC.

Informa has been building a position within the broader Food and Foodservice
market for some time. Within Informa Connect, we own and operate the leading
B2B Event for the US Catering Industry (Catersource) alongside several other
specialist B2B Events (CREATE). We also reach more than 1 million industry
professionals through our portfolio of leading specialist media brands,
including NationÕs Restaurant News, Restaurant Hospitality, Food Management
and Supermarket News.

Within Informa Markets, we have built a strong portfolio serving the Asian
Food and Foodservice Market through brands such as Hotelex, Food &
Hospitality and HOFEX. In addition, we own and operate a range of Live &
On-Demand B2B Events across the broader food market, including National
Products Expo, Supplyside West and Vitafoods.

Financial details

á      Winsight initial enterprise value $380m, fully cash funded

á      Earn-up of $20m, payable subject to the delivery of stretch
revenue and EBITDA growth targets

á      In 2023, Winsight full year revenues are expected to be c.$100m
and EBITDA $35m+

Completion of Tarsus acquisition

Separately, Informa can confirm that it recently completed the acquisition of
Tarsus, which was first announced on 9(th) March, ahead of schedule. A full
update will be provided within the AGM Trading Update on 15 June, with the
original press release available via InformaÕs website at www.informa.com
(http://www.informa.com) .

 

 Enquiries
 Stephen A. Carter, Group Chief Executive                  +44 (0) 20 8052 0400
 Gareth Wright, Group Finance Director                     +44 (0) 20 8052 0400
 Richard Menzies-Gow, Director of IR & Communications      +44 (0) 20 8052 2787
 Tim Burt / Simon Duke Ð Teneo                             +44 (0) 7583 413254 / +44 (0) 7815 779225

Notes to Editors

About Winsight

Winsight is a leading B2B information services company focused on the food and
beverage industry, providing insight and market intelligence to business
leaders in every channel that consumers buy food and beverage Ð convenience
stores, grocery retailing, restaurants and non-commercial foodservice Ð
through a range of specialist media, events, data products, advisory services
and trade shows.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQFIFIVETITLIV