Amy-Jo Crowley and Emma-Victoria Farr
LONDON/Frankfurt (Reuters) - Blackstone has begun selling Clarion campaigns, with four people familiar with the matter saying demand for acquisitions has been tested amid deals amid weeks of market turbulence.
Blackstone held an international trade show for electronics, gaming, energy, security and defense in 2017 for £600 million ($802 million) and supported Clarion through Covid Pandemic, when the event industry suddenly stopped the company’s revenue and revenue.
The U.S.-based private equity fund distributed information memorandums earlier this month and attracted benefits from funds including CVC, KKR, PAI Partners and Ardian, the four said on condition of anonymity.
One of the people said that Asian private equity firm Hillhouse Investment is also interested in Clarion, which hosts trade shows in China through its global source business.
The person said Clarion's revenue before interest, taxes, depreciation and amortization was about 12 times, and the person could value the company about £2 billion. Reuters reported last year that Blackstone has begun exploring options for the business.
Blackstone, KKR, Hillhouse, CVC, Pai Partners and Ardian declined to comment. Clarion did not immediately return a request for comment.
The business will be one of the largest private equity assets after U.S. President Donald Trump’s tariffs sparked weeks of volatility, resulting in the biggest drop in global sales in 20 years.
The people say Blackstone has been waiting for clarity on the economic outlook and Trump’s tariff impact before launching the process. In a review of the first half of fiscal year 2024-2025, it said Kraun has been managing its cost base and cash flows and monitoring economic stress, adding that the cash flow budget is better than the budget.
People say there is no guarantee that a deal will be concluded.
Investor sentiment has been gaining in recent weeks after the U.S. and China agreed to temporarily cut tariffs. Shared benchmarks in Europe and the United States recovered from its stumble after Trump’s April 2 tariff announcement.
Prada bought $1.38 billion in smaller rival Versace from Capri Holdings, Doordash's $3.6 billion offer Driveoo's offer and KKR's $3.1 billion post-trade services business Osttra deal, one of the finish line deals.
According to its latest results, as the industry is in normal condition in China and Hong Kong, Clarion organized the London International Horse Show and other events, and revenue jumped to £432.9 million in the 12-month period in January 2024.