Minneapolis, MN – UBM Live acquired a 70% stake in Catersource, which organizes the Catersource trade show and Event Solutions, from the company’s private owners for $5 million in cash consideration. In 2010, Catersource generated approximately $4 million of revenue. The acquisition is expected to meet UBM’s cost of capital hurdle rate, or rate of return, in its first full year of ownership, according to UBM.
The two shows will be added to UBM Live’s U.S. and international portfolio of events serving the food and leisure industries. The portfolio includes brands such as Cruise Shipping, Food Ingredients, Health Ingredients, Leisure Industry Week and Confex.
Catersource’s staff and founders Mike Roman and Kelvin Lee will remain with the show. “We are delighted that Kelvin Lee, Mike Roman and their team will be joining UBM Live,” said UBM Live CEO Simon Foster. “Catersource is the leading events business in the U.S. catering industry, and we see opportunities to grow the brand by leveraging our U.S. and worldwide infrastructure and synergies with other UBM events.”
The events are held annually in February and March in Las Vegas. The 2011 editions combined drew more than 10,000 attendees and 4,500 exhibiting and sponsoring companies. Exhibit space totaled 90,407 net square feet.
UBM said Minneapolis-based Catersource, which also publishes a trade magazine by the same name, serves a vibrant U.S. catering industry, which saw revenues grow 9% in 2010 to more than $14 billion, with similar rates of growth forecast for 2011.
Reach Simon Foster at +31 20 40 99544 or simon.foster@ubm.com
