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Equipotel is the largest hospitality show in Latin America

Reed Exhibitions acquires Brazil’s Equipotel, completes Alcantara Machado JV

The rapid growth of Reed Exhibitions in Brazil is gaining new impetus with the acquisition of Equipotel and its events in Sao Paulo and Recife. The transaction puts the country’s industry-leading hotel and hospitality events into the Reed Exhibitions portfolio on the heels of the successful completion of the Alcantara Machado joint venture in January.

Equipotel, the largest hospitality show in Latin America, is on pace to achieve significant growth at its annual Sao Paulo event in September, benefitting from the strength of the hospitality sector. Meanwhile the 2011 launch of Equipotel Nordeste in Recife, centered in the heart of Brazil’s burgeoning Northeast, is expected to nearly double in size this year when it opens in May. Reed Exhibitions’ ability to leverage the international strength of its French hospitality brand – Equip’Hotel – will benefit customers in Brazil and international companies seeking to enter the Brazilian market alongside broad economic growth. World Cup 2014 and the 2016 Olympics will also continue to drive increasing interest in the country’s hospitality sector.

Completion of the joint venture with Alcantara Machado and buyout of its partners marks a significant milestone for Reed Exhibitions in Brazil. Equipotel and other acquired businesses outside the joint venture will be consolidated into the fully-owned Reed Exhibitions Alcantara Machado (RXAM), creating a business with 46 events employing nearly 250 people. Reflecting the increasing importance of Brazil to the world economy, Reed Exhibitions’ Brazilian business has been dramatically transformed from an enterprise that started 2007 with five events and a staff of 23.

In terms of scale, in 2013 RXAM will contribute about 40 percent to the revenue/profit of the Reed Americas division and will potentially rank among the world’s top 25 event organizers in its own right.

“Our intention for Brazil has been clear from the outset – maximize our opportunities in the Brazilian marketplace to create sustained, profitable growth in a dynamic developing market. We are doing this while continuing to drive strong growth in our North American portfolio,” said Reed Americas President Chet Burchett. “We anticipate continuing to build on the strong foundation which has been put into place in the Americas through organic growth, event launches and additional acquisitions in both North and South America.”

“Equipotel is an exciting addition to our portfolio for a number of reasons. It puts us into a leading position in an important, growing market sector where we did not have a presence; it allows Reed Exhibitions to leverage the power of the strong Equip’Hotel international brand to add value for our customers; and the presence of Equipotel Nordeste in Recife bolsters our existing presence in that region and adds gravitas to our longer-term goals in the Northeast,” Burchett said.

Equipotel is the fourth acquisition since Reed Exhibitions acquired a majority position in Alcantara Machado and became Brazil’s leading tradeshow organizer in 2007.
– In 2009, the company acquired MG Media and, with it, the leading offshore oil and gas event (Brasil Offshore) and Salon Duas Rodas, Brazil’s #1 motorcycle B2C event. In the two event cycles under Reed’s management, the two events have grown a combined 44% in terms of volume.
– In 2011, Reed Exhibitions acquired MultiPlus and the leading tradeshow for ethanol production as well as events for sugarcane production, industrial supply and furniture manufacturing. Importantly, the MultiPlus acquisition provided entree to the important Northeast market with three events in Recife.
– Late in 2011, an additional upstream oil & gas event – Santos Offshore – was acquired in the port city of Santos.

In Brazil, Reed Exhibitions covers a wide array of B2B market segments, including automotive and transportation; manufacturing and industrial; construction and green building; security; agriculture; upstream energy and alternative energy; consumer electronics; publishing; and textiles. RXAM also organizes a series of popular B2C events, including the biennial auto show which draws 500,000 visitors.

Equipotel was acquired from a private, family owned business and the terms of the transaction were not disclosed.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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