UBM added more than a few dozen shows to its fashion portfolio in the United States with the acquisition of Business Journals Inc. for $69 million in cash.
“We are delighted to have acquired BJI. This transaction is very much in line with our ‘Events First’, strategy,” said Tim Cobbold, CEO of UBM.
He added, “It adds to our presence in North America and also in the fashion sector, both of which were already strong following UBM’s acquisition of Advanstar at the end of 2014. We see excellent opportunities to deliver an improved experience for customers and to realize the operational benefits which scale will bring.”
BJI serves the men’s and women’s apparel and accessories markets with several brands that include AccessoriesTheShow, EDIT, FAME, Moda, MRket and Stitch.
“UBM Americas is the perfect home for BJI’s hallmark brands. The complementary nature of our portfolios and teams will undoubtedly create opportunities for growth and a better overall experience for our brands and retailers,” said Britton Jones, president and CEO of BJI.
He added, “I am excited by this union and confident that together we will craft the future of events for the fashion industry. This is a great day for our customers, our industry and for BJI.”
In total, the BJI Fashion Group runs 21 shows annually at the Jacob K. Javits Convention Center in New York and six shows per year at the Sands Expo Convention Center in Las Vegas.
BJI also publishes three trade magazines including MR (Menswear Retailing), the world’s largest menswear business-to-business magazine and Accessories, which has been the leading publication of the women’s fashion accessories market for over 100 years.
In addition, BJI has a 54 magazine custom publishing division, seven web sites, and maintains one of the industry’s largest databases of fashion retailers.
In 2015, BJI’s revenues were approximately $33 million-$40 million from events and $7 million from other marketing services.
BJI fits neatly into to UBM’s existing fashion tradeshow portfolio, which includes the massive biannual MAGIC Market Week collection of shows in Las Vegas.
The combination of BJI and UBM will provide an improved experience for both attendees and exhibitors and generate material synergies in areas such as event operations, property and cross-marketing opportunities, according to UBM officials.
UBM Americas has 12 of the 2015 TSNN Top 250 trade shows on the list, including MAGIC Market Week and Medical Design & Manufacturing West.
BJI is expected to make a modest post tax contribution this year. In 2017, with a full year of contribution and strong operational and financial synergies, the acquisition will achieve a return on investment in excess of UBM’s weighted average cost of capital.
JEGI, a New York City-based investment bank for the global media, information, marketing, software and tech-enabled services sectors, represented BJI in this transaction.
- Industry News