NürnbergMesse acquires Brazilian exhibition company
- Managing Director Bernd A. Diederichs: "Biggest acquisition in the company's history"
- Managing Director of NuernbergMesse Brasil, Ligia Amorim: "We are proud to be part of the NürnbergMesse Group"
In the middle of the severest global recession for over 50 years, NürnbergMesse sets the growth signal to green and doubles its foreign turnover to 10 to 15 million euros through the purchase of the Brazilian exhibition organizer Nielsen Business Media Brasil. NuernbergMesse Brasil, as the youngest subsidiary will be called, will in future organize ten events of its own in São Paulo in the sectors of pharmacy, cosmetics, analysis, glass technology, kitchen and bathroom, pet and veterinary supplies, food and beverage industry, and sustainability. Furthermore a building exhibition has been licensed to Argentina. The company achieved a turnover of over seven million euros in 2008, employs a permanent staff of more than 20 and is managed by Ligia Amorim, 47.
"We are proud to now be part of NürnbergMesse. Our exhibitions fit the portfolio of the NürnbergMesse Group exceptionally well and will also stimulate growth for the events in Nürnberg," says Amorim. Bernd A. Diederichs, Managing Director of NürnbergMesse, is also convinced of this: "The exhibition portfolios in Nürnberg and Brazil match each other excellently. Such an opportunity for a company occurs only once every ten years."
The Nürnberg exhibition experts should know. After all, they have been buying exhibitions for over 20 years. However, the purchase of the Brazilian exhibition company outshines everything that has ever happened before. "This is the biggest acquisition in the history of the company and the most important step we have ever made abroad," confirms Diederichs. Admittedly, he is not prepared to reveal details of the purchase price, except that "It runs into tens of millions, at least in Brazilian reais," says the Managing Director of NürnbergMesse with a grin.
The seller is Nielsen Business Media (NBM) with headquarters in New York. NBM is one of the many subsidiaries of the Nielsen Company, one of the world market leaders for marketing and media information and for services in the B2B sector. Nielsen Business Media Brasil was in turn the only company in the Nielsen Group outside the USA that organized trade shows and exhibitions.
"We were advised during the acquisition by the Fair Relations GmbH in Germany and Global Event Strategies LLC in the USA. All the steps would have been appreciably more difficult without this support," explains Claus Rättich, Member of the Management Board and together with his colleague Dirk Blum responsible for acquisitions at NürnbergMesse.
For the seller, the transfer of ownership is a sensible streamlining of its portfolio, and for NürnbergMesse the probably unique opportunity to acquire a whole series of exhibitions that fit the existing portfolio excellently and cover a planned market of the future at the same time. For the NürnbergMesse Group has already been active in Brazil for some years with the two exhibitions BioFach América Latina and ExpoSustentat.
Expansion strategy of NürnbergMesse Group
"The scenario of our strategic planning up to 2020 is to develop exhibitions of a leading nature in the growing continental economic regions which reflect the inner-regional flows of goods better than is possible with the existing exhibitions in Europe. It will therefore become increasingly important to be present in these markets," says Diederichs. His goal is therefore to develop or purchase corresponding worldwide exhibitions parallel to the exhibition concepts in Nürnberg and so achieve global market leadership in the best case. Some 20 additional exhibition concepts are therefore to be established worldwide by 2020 to supplement the present 20 exhibitions. The NürnbergMesse Group plans to invest some 150 million euros in expansion in Germany and abroad in the coming good ten years.
Virtually one-hundred-per-cent match
The most recent acquisition brings NürnbergMesse a big step closer to its strategic goal. The exhibition portfolio of NuernbergMesse Brasil will contain the following exhibitions in future:
- ANALÍTICA Latin America (08.-10.09.2009)
International Exhibition of Laboratory Technology, Analyses, Biotechnology and Quality Control
- BioFach América Latina (28.-30.10.2009)
International Trade Fair and Conference for Organic Products
- ExpoSustentat (28.-30.10.2009)
International Trade Fair for Sustainability
- FCE Cosmetique (26.-28.05.2009)
International Exhibition of Technology for the Cosmetic Industry
- FCE Pharma (26.-28.05.2009)
International Exhibition of Technology for the Pharmaceutical Industry
- FEMATEC (organization contract at Argentinia)
International Exhibiti9on for Building Materials and Technology
- GLASS SOUTH AMERICA (06.-08.05.2010)
International Exhibition of Glass Technology
- Kitchen & Bath (09.-12.03.2010)
Exhibition for Kitchens and Bathrooms
- PET SOUTH AMERICA (22.-24.07.2009)
International Exhibition of Pet Supplies
- REVESTIR (09.-12.03.2010)
Tile and Stone Exhibition
- TecnoBebida (14.-16.09.2010)
International Exhibition of Beverage Technology
And in addition a number of smaller events for the food industry, plus congresses and regional conferences.
"The list of events makes it clear how well our portfolios fit together. Both companies will profit from this. NuernbergMesse Brasil through a better presence of its exhibitions in Europe and worldwide, and conversely, we can market NürnbergMesse events appreciably more prominently in South America," emphasizes Diederichs.
Background: Brazilian exhibition market
Brazil has the tenth largest economy in the world. 64 % of the Gross Domestic Product is produced by the service sector, 30 % by industry and 6 % by agriculture. Brazil has profited strongly from the raw materials and agriculture boom of the past years. It achieved substantial trade surpluses, which it used for reducing its foreign debts. The national currency is the Brazilian real (plural: reais), which has a current exchange rate of 1 euro = 2.88 reais (1 real = 0.35 euro).
The economic situation in Brazil developed positively in 2008. The Gross Domestic Product achieved estimated growth of 5.2 % compared with the same period of the previous year. In the wake of the worldwide recession, a lower economic performance of three per cent and a slightly rising inflation rate to over five per cent are expected for 2009. At the beginning of 2007, the Brazilian government started a programme for accelerating economic growth that foresees investments of over 500 billion reais (some 173 billion euros) until 2010 - especially in infrastructure projects.
The Brazilian exhibition market is broad-based: some 150 exhibitions a year take place in over 20 cities. The statistics show around 38,000 exhibitors (including 6,000 from abroad) and 7.5 million visitors a year. According to estimates, the Brazilian events sector grew by an average of 7 % a year in the past years.
Compared with other countries such as Germany, the situation in Brazil differs in that exhibition organizers and operators of exhibition sites are different companies. The major exhibition sites are in São Paulo, where the majority of exhibitions of international importance and with international participants take place (around 60 last year).
Brazil holds a top position for German exhibitors and German exhibition companies in Latin America and besides Mexico is the most important trading partner in Latin America. The good economic relationships between Germany and Brazil have a long tradition. Most of the large German companies have been based in Brazil for decades. More than 1,200 German companies, of which 800 are in the São Paulo region, have subsidiaries in Brazil. The subsidiaries and not the parent companies accordingly exhibit often at the large Brazilian exhibitions.
German and other leading international exhibition companies discovered the Brazilian exhibition market for themselves some years ago and in addition to Nürnberg the exhibition companies in Frankfurt, Munich, Hanover and Düsseldorf are already active there. The leading Anglo-American organizers represented in the market include Reed and CMP. NuernbergMesse Brasil is one of the largest foreign exhibition companies in Brazil.
About NürnbergMesse Group:
The NürnbergMesse Group with a turnover of more than 150 million euros is one of the 20 largest exhibition companies in the world and one of the Top Ten in Europe. The portfolio covers more than 100 international exhibitions and congresses at the Nürnberg location and worldwide. Every year, over 27,000 exhibitors (international share: 37 %), 895,000 trade visitors (international share: 20 %) and 395,000 consumers participate in the NürnbergMesse Group's own, partner and guest events. The group currently employs 285 persons and moderate expansion is planned. The NürnbergMesse Group comprises NürnbergMesse, Nürnberg Global Fairs, NürnbergMesse China, NürnbergMesse North America, and the new NuernbergMesse Brasil.
About NuernbergMesse Brasil:
NuernbergMesse Brasil is a one-hundred-per-cent subsidiary of NürnbergMesse. It is one of the largest foreign exhibition organizers in Brazil and produces a turnover of over seven million euros with 23 employees. Its portfolio includes ten events of its own and one organization contract. The Managing Director of NuernbergMesse Brasil is Ligia Amorim.
Contact for press and media:
Peter Ottmann, Sarah Schaeffauer-Koers
Tel +49 (0) 9 11. 86 06-83 15
Fax +49 (0) 9 11. 86 06-86 40
This and other articles and photos are available in the press section at: www.nuernbergmesse.de/press