Just after the announcement that Jose Papa, to date Managing Director Cannes Lions, is leaving the organisation of the Advertising festival and just one month after the company completed the incorporation of Warc to Cannes Lions new digital offering called The Work, Ascential unveils today that it has completed the sale of Ascential Exhibitions to ITE Group for a total consideration of £300 million.
The sale agreement includes the following event brands: Bett (including The Education Show; CWIEME -electric motor generator and transformer-, Spring & Autum Fair -home and gift retail-; Pure – fashion retail-; Glee -gardening retail-; and BVE -entertainment and media technology-.
The disposal was originally announced on 15th May 2018 and further details were set out in a circular sent to the Company’s shareholders on 7th June 2018. The Disposal was approved by the Company’s shareholders at a general meeting on 25th June 2018.
Duncan Painter, Chief Executive Officer of Ascential, said on this operation:”The divestment of the Exhibitions business is an important step for Ascential. I am pleased that we have found a good home for the Exhibitions team and would like to thank them for their contribution to Ascential.
Looking ahead, we remain focused on enabling our customers to succeed in the digital economy, and this sale increases our financial capacity to invest in the future growth of our business.”
Leaving aside the organic growth of the business, Ascential has made some company purchases in 2017 and 2018 worth to mention, such as the acquisition of Medialink (strategic advisory firm and business services provider to the Media, Marketing, Advertising, Technology and Entertainment industries) and Clavis (eCommerce analytics provider for digital shelf) in 2017, and that of Warc conultancy this same year.
Cannes Lions less than a 2.5% of total business revenues
Ascential continuing Group will consist of the Information Services segment, plus the Cannes Lions, Lions Regionals, Money 20/20, and World Retail Congress brands.
All of them together amount to £313,7 millions in revenues yearly, with Lions Regionals (Eurobest, DubaiLynx, Spikes Asia) and World Retail Congress contributing to total revenues with just some £7.9 million (a 2.51%).
Cannes Lions continues restructuration, without Papa
After a deep restructuring that started off last year, Cannes Lions announced last March that Philip Thomas (Chief Executive of Ascential Events) was to succeed Terry Savage as Chairman of Cannes Lions. Thomas was supposed to keep the CEO position at Ascential Events. The company was already negotiating the sale of Ascential Exhibitions to the ITE Group.
Just five days ago, it was announced that José Papa is leaving the Cannes Lions organisation. His responsibilities are going to be undertaken by Thomas as well.
Further restructuring after the crisis in 2017 does not affect only the human resources side of the Cannes Lions organisation, but also competition categories and the knowledge and data side of the business. In fact, the Festival has launched a digital offer called The Work, including Warc’s know how this year and Thomas told Eastwind that perhaps there will be a new Sports category by 2019.
The Festival has experienced in 2018 a great drop in enters due to Publicis withdraw from any competition in 2018 and the cut in number of categories, but Thomas, who deeply regrets the exit of José Papa, expects the drop down will be compensated by 2019.
Image over the headline.- © Ascential plc.
Related Eastwind Marketing links:
Cannes Lions, perhaps adding Sports Marketing as new category by 2019
Cannes Lions 2018.- 84% more works entered by brands
Philip Thomas to succeed Terry Savage as Chairman of Cannes Lions
Cannes Lions.- Deep restructuring announced for the 65th edition. Publicis reiterates support but will not resume participation till 2019
