Beijing, 28th February: GL events announced plans to acquire 55% of CIEC Union, subject to approval from the Ministry of Commerce of the People’s Republic of China (MOFCOM). Financial details for the acquisition were not released.
CIEC, China International Exhibition Center Group, is a Chinese stated-owned company and is also a subsidiary of the government body, the China Council for the Promotion of International Trade (CCPIT). After the acquisition, CCPIT will retain a 39% stake in CIEC, while CIEC managers will hold the remaining 6%. This is an unusual acquisition in that an international organiser is acquiring a controlling stake in a large, state-owned organiser.
According to GL events, CIEC Union has a team of about 100 full-time employees. Revenues in 2019 are expected to be €40 million (US$45 million), with an operating margin of more than 35%.
CIEC Union organises several events larger than 100,000 gross m2 including Beijing Fabric Wallpaper Expo, Build & Décor Expo, the China International Door Expo and ISH China & CIHE serving China’s heating, ventilation and air conditioning industries.
After the acquisition, the companies plan to build on CIEC’s existing portfolio as well as developing new events in cities across China. Earlier this year, GL events acquired ZZX, which was later renamed GL events Live Shenzhen