Private equity giant Blackstone mulls over potential sale of Clarion for approximately £2 billion.
Firing up for a Sale: Blackstone's Move to Sell Clarion Events
Blackstone, the prominent private equity giant, is pondering over the prospect of offloading Clarion Events, a renowned global event organizer known for ICE and iGB L!VE expos. Sources suggest the deal could fetch up to £2 billion ($2.7 billion).
In 2017, Blackstone acquired Clarion for £600 million ($809.79 million). Since then, Clarion's revenue has skyrocketed, reaching an astounding £432.9 million ($584.26 million) by early 2024. This expansion can be attributed to 125+ global events spanning gaming, defense, and design that Clarion oversees.
Recent strategic moves by Clarion - relocating ICE to Barcelona and iGB L!VE to London - indicate a revamped strategy aimed at broadening audience reach and boosting exhibitor participation. Notably, the gaming division has spearheaded this recovery, with ICE's new venue in Barcelona offering more space, while iGB L!VE aspires to attract 30,000 visitors and 550 exhibitors by 2028.
Examining Potential Buyers
Private equity powerhouses are taking notice. Blackstone has shared relevant documents with interested parties. Hillhouse Investment, operator of Global Sources events in China, has exhibited early interest, and firms like KKR, CVC, Ardian, and PAI Partners are also dedicating resources to evaluate the opportunity.
If the deal materializes, it could rank as one of the biggest private equity exits in recent months. The estimated deal price revolves around 12 times Clarion's EBITDA.
Reviving Fortunes, Triggering a Sale
Clarion's impressive financial results stem from the resurgence of events in Asia and stringent cost management. Over a year, revenue soared from £257 million ($346.86 million) to £432.9 million ($584.26 million), largely attributed to reignited activities in China and Hong Kong.
Recovering investor confidence echoes this rebound, following the resolution of U.S.-China trade tensions. Blackstone, initially hesitant about selling, now seems ready to jumpstart the process.
Besides gaming, Clarion organizes events encompassing home design, consumer electronics, and defense, including the London International Horse Show.
- The current financial success of Clarion Events, as a result of the resurgence of events in Asia and stringent cost management, could attract potential buyers like Hillhouse Investment, KKR, CVC, Ardian, and PAI Partners, as Blackstone prepares to sell.
- If the deal to sell Clarion Events materializes, it could rank as one of the biggest private equity exits in recent months, considering the estimated deal price revolves around 12 times Clarion's EBITDA.
