dmg world media Has Sold California Gift Show to Merchandise Mart Properties
New York, NY May 11, 2009 – dmg world media (www.dmgworldmedia.com), a division of Daily Mail & General Trust plc (DMGT), has sold the California Gift Show (CGS) to Merchandise Mart Properties, Inc. (www.merchandisemartproperties.com). The company also announced its intention to sell its remaining U.S. West Coast and Canadian Gift Shows.
The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com) the leading provider of independent investment banking services for media, information, marketing services and related technologies, represented dmg world media in the sale of CGS and is representing the company as well in its divestiture of the U.S. West Coast and Canadian Gift Shows.
“This final stage of activity puts dmg world media nearer the strategic finish line here in North America,” said Mike Cooke, CEO, dmg world media. “In 2007, we set out to reshape the business to focus more on fast growing trade markets and less on consumer based products. We have been successful thus far in finding buyers who see value in these products, which are no longer a strategic fit for dmg world media, but still have great potential in their regional or niche markets.”
North American Gift Shows
The sale of the CGS was the first in a series of strategic moves to reduce the company’s North American gift operations. dmg world media will next seek a buyer for its gift trade shows in San Francisco, Seattle, and Canada.
dmg world media acquired the Canadian gift shows as part of the company’s first major acquisition in North America the acquisition of Southex in 1996. The company’s next acquisition was CGS, which it purchased from AMC in 1998. The other three west coast shows were acquired from Western Exhibitors in 2001.
“With all of the changes we have seen in the gift market in the last 10 years, it makes sense to transfer ownership to regionally based platforms for these shows. In the future, our focus will be on national events, national audiences and national trends. That’s where we can make the most valuable contribution to the industry,” said Alan Steel, EVP, Business-to-Retail, dmg world media.
It is expected that the U.S. shows will be sold in one parcel and the Canadian shows in another. Talks are underway with prospective buyers, but no further details are available at this time. This announcement does not affect the company’s remaining business-to-retail operations in White Plains, NY or Atlanta.
Since dmg world media first announced the results of a strategic review in 2007, the company has been working towards realigning its North American business by divesting consumer based products and, to a lesser extent, some regional trade businesses. The first major transaction was the accelerated acquisition of GLM, the leading gift tradeshow organizer in North America, in October 2007. This was followed by the sale of the company’s 38 North American consumer home shows to Marketplace Events in July 2008. (JEGI represented dmg world media in both of these transactions.)
Today’s announcement is the next step in the strategic plan for North America. Several of the company’s key brands and operations remain based in North America including digital marketing and technology events and web sites, such as ad:tech, iMedia, and Evanta; oil and gas products, such as the Global Petroleum Show; and consumer goods, such as the New York International Gift Fair, the National Stationery Show, the International Contemporary Furniture Fair, and Surf Expo.
About dmg world media
dmg world media is an international trade show producer, with principal operations across North America, Europe and Asia. The company is a wholly-owned subsidiary of the Daily Mail and General Trust plc (DMGT), one of the largest and most successful media companies in the United Kingdom. For more information, visit www.dmgworldmedia.com.
About Merchandise Mart Properties, Inc.
Merchandise Mart Properties, Inc. (MMPI) is the world’s leading owner and operator of showroom buildings and trade show facilities. The company also brings buyers and sellers together in more than 300 market events, trade and consumer shows and conferences each year. For more information, visit www.merchandisemartproperties.com.
The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading provider of independent investment banking services for media, information, marketing services and related technologies. Since being founded in 1987, JEGI has completed nearly 500 high-profile M&A transactions for global and emerging companies; entrepreneurial owners; and private equity and venture capital funds. For more information, visit www.jegi.com
“Once again, JEGI’s team of bankers delivered outstanding results for dmg, providing sound advice and counsel on this transaction. The team was tenacious, efficient, and added value through each step of the process. We fully appreciate JEGI’s commitment to excellence, while working on our behalf.”
– Mark Alcock, Deputy CEO, dmg world media