It was the clear objective of Messe Düsseldorf for 2015 to sell its majority shareholding in its Czech subsidiary in Brno, Veletrhy Brno a.s. (BVV). The City Council of Brno approved the purchase of the majority shareholding on December 18th. The contract was signed on December 22nd in Brno. Closing of the transaction is scheduled for the end of February 2016.
The purchase price is 8.3 million Euro. In addition BVV will repay to Messe Düsseldorf a shareholder loan of 13.7 million Euro representing Messe Düsseldorf’s capital invested in BVV.
Werner Dornscheidt, CEO of Messe Düsseldorf commented: “The decision on the share sale is a logical business decision due to the changing market situation. The market changes in Central and South Eastern Europe – which were partly caused by the financial- and economic crisis – have led to an increased regionalization of the fair business.” While this development creates new opportunities for further development for both BVV and the city of Brno Messe Düsseldorf and its customers barely benefit from this development, commented Dornscheidt further. The foreign activities are currently realigned and Messe Düsseldorf will continue to further invest into the economic areas of Asia as well as North and South America. In order to follow this path consistently, Messe Düsseldorf had already in 2012 offered their shares to the city of Brno.
The exhibition companies Brno and Düsseldorf however continue to remain partners, as a corresponding long-term contract has been signed. This includes among others: continued access for BVV to the existing network of foreign representatives of Messe Düsseldorf, BVV will continue to act as the foreign representative for Messe Düsseldorf in the Czech Republic, the existing contract for booth construction by BVV at the fairs in Düsseldorf has been extended until the year 2021.
CatCap advised Messe Düsseldorf in the successful disposal of its majority sharholding in Veletrhy Brno a.s.
About Messe Düsseldorf Group
With a turnover of EUR 300 million in 2015, Messe Düsseldorf Group has again confirmed its position as one of Germany’s most successful trade fair companies. At this year’s events in Düsseldorf, approx. 25,700 exhibitors presented their products to 1.1 million trade visitors. Add to this more than 400,000 congress delegates. With about 50 trade fairs, including 24 number-one events organized at its Düsseldorf Exhibition Centre in its five areas of expertise – machinery, plant and equipment, retail, skilled trades and services, medicine and health, fashion and lifestyle as well as leisure – and its 80 to 100 additional proprietary events, international participations and third-party events in other countries, Messe Düsseldorf GmbH is one of the leading export platforms worldwide. In this context, Messe Düsseldorf GmbH ranks number one in terms of the international participation in its capital goods exhibitions. At the company’s proprietary trade fairs in its areas of expertise – machinery, plant and equipment – about 64 per cent of all exhibitors and 54 per cent of all trade visitors travelled to the Rhine from abroad; customers from about 180 countries visited the trade fairs in Düsseldorf. The Group’s global network consists of sales organisations in 132 countries (71 international representative offices) as well as centres of expertise in 8 countries.
More information under www.messe-duesseldorf.de
* All figures subject to the final balance
CatCap and the international M[&]A network Globalscope offer integrated cross-border M[&]A consulting services for medium-sized transactions. CatCap – a partner led corporate finance firm – advises businesses and shareholders to realise their strategic objectives ensuring the highest level of quality. CatCap is based in Hamburg and Munich with 22 employees. Globalscope has 46 members in 39 countries with more than 500 professionals worldwide. For further information about CatCap, please visit www.carlsquare.com.