UBM Live has splashed out US$5m for a 70 per cent equity stake in the US-based Catersource catering conference and exhibition.
The cash purchase also includes its sister show Event Solutions, which is targeted at the events planning industry. According to a UBM statement, Catersource will become part of UBM Live and sit alongside its international food and events brands including Food Ingredients, Leisure Industry Week and International Confex.
Catersource founder Michael Roman and partner Kelvin Lee, as well as the company’s 13 employees, will remain with the business.
Catersource was founded in 1982 in Minneapolis and generated $4m in revenue last year. Its flagship events take place annually during February and March in Las Vegas.
“We see strong opportunities to grow the brand by leveraging our US and worldwide events infrastructure, as well as driving synergies with other UBM events,” UBM Live chief executive Simon Foster said. “We are delighted that Kelvin Lee, Mike Roman and their team will be joining UBM Live and look forward to working with them to develop the business going forward.”
UBM pointed out the US catering industry is worth more than $14bn and comprises of 80,000 catering operations nationwide.
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