Blackstone Initiates Clarion Events Sale Amid Market Recovery

Blackstone Group has initiated the sale of Clarion Events, a global events and exhibitions company, as market stability returns after weeks of volatility. The move comes as a test of acquisition demand following a period of market turbulence that hindered deal-making.

Blackstone acquired Clarion Events in 2017 for 600 million pounds (802 million USD). The company organizes international trade shows in sectors such as electronics, gaming, energy, security, and defense. The events industry faced a sudden halt during the COVID-19 pandemic, leading to significant impacts on the company's revenue and profits. Blackstone has been supporting Clarion Events through this challenging period.

Four anonymous sources revealed that the American private equity firm distributed information memorandums earlier this month, attracting interest from several funds, including CVC, KKR, PAI Partners, and Ardian. One of the sources mentioned that the Asian private equity firm Hillhouse Capital also expressed interest in Clarion Events, particularly due to its global resources business, which organizes trade shows in China.

The potential sale price of Clarion Events could reach around 12 times its earnings before interest, taxes, depreciation, and amortization (EBITDA), which could value the company at approximately 2 billion pounds. The sources emphasized that there is no guarantee that a deal will be finalized.

Blackstone has been waiting for clarity on the economic outlook and the impact of Donald Trump's tariff policies before proceeding with the sale. Clarion Events reported in its 2024-2025 fiscal year mid-term review that it has been managing its cost base and cash flow while monitoring economic pressures. The company also noted that its cash flow performance has been better than budgeted.

Investor sentiment has improved in recent weeks, with benchmark stock indices in Europe and the U.S. recovering from declines triggered by Trump's tariff announcements in early April. Several high-profile deals, including Prada's acquisition of a smaller competitor, Versace, for 1.38 billion USD, DoorDash's acquisition of Deliveroo for 3.6 billion USD, and KKR's acquisition of post-trade services firm OSTTRA for 3.1 billion USD, have been completed.

According to Clarion Events' latest financial results, the company's revenue surged to 432.9 million pounds in the 12 months ending January 2024, up from 257 million pounds a year earlier. This growth was driven by the recovery of the industry in China and Hong Kong, as well as the successful organization of events like the London International Horse Show.