Tarsus Buys 65% Stake in China-based Hometex – Home Textiles Show for $23.8 Million
December 22, 2016
Tarsus Group has made another acquisition this month and its second recent acquisition in China, with a 65-percent stake of Foshan Huaxia Home Textile Development Co., Ltd. ("Foshan Huaxia") from the Guangdong Home Textile Association and Association Member shareholders.
Foshan Huaxia owns the Home Furnishing Expo (Hometex), the leading biannual home textiles exhibition in China.
The acquisition of 65 percent of Foshun Huaxia was made for an estimated cash consideration of RMB174m (approximately £19.3m and $23.8 million).
"Following the recent acquisition of Intex in Shanghai, we are delighted to be acquiring Hometex in Shenzhen,” said Douglas Emslie, Tarsus managing director.
He added, “These are the two key trading hubs in China for Tarsus and we now have four of the largest exhibitions in Shenzhen. These acquisitions will further deepen our exposure to industries benefiting from the strong shift towards domestic expenditure that is underway in China, which is the second largest exhibition market in the world.
Hometex was launched in 1997 and takes place biannually in the spring and autumn each year in Shenzhen. The next edition of the event will be held in March 2017, which already has a waiting list.
The spring edition, the larger of the two events, occupies all of the available venue capacity, approximately 1.14 million square feet (106,000 square meters in 2016) of gross space.
With the event’s successful growth, the new exhibition center planned for Shenzhen allows for potential expansion to take place from the 2019 edition onwards.
The initial phase of the venue will see it triple in size to 3.2 million sqaure feet (300,000 square meters), a size that could potentially benefit the wider Tarsus portfolio, according to company officials.
The home furnishings market is now the fourth highest sector of family consumption in China. Guangdong province itself accounts for more than 50 percent of the Chinese home furnishing market by value.
The Hometex brand has strong industry backing with one of the original shareholders being the Guangdong Home Textile Association. The Chinese Chamber of Commerce for textiles also has a long-term partnership with Hometex.
"Hometex is the dominant home textile event in China and the new exhibition centre in Shenzhen offers a significant organic growth opportunity,” Emslie said.
He added, “Hometex will work closely with our housewares and home interiors events in Istanbul and Jakarta to exploit the synergies between each of them to grow, broaden and internationalise the events. This represents a strong step forward in our Quickening the Pace growth strategy."
The acquisition is subject to normal governmental approval in China and is expected to complete in the first quarter of 2017, before the spring event.
The remaining 35 percent of the shares in Foshan Huaxia will continue to be held by the Guangdong Home Textile Association and Association Member shareholders, who are also exhibitors at the events. The existing management will also remain in place.
Besides Intex and Hometex, Tarsus also bought an 80-percent stake in Atlanta-based Connect, an events and publishing portfolio serving the meetings and exhibitions industry, earlier this month.
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
Add new comment