Publicly traded Viad Corp. has agreed to sell its GES business, a provider of exhibition and event services, to Truelink Capital for $535 million in cash, with $510 million paid at closing and $25 million through a one-year seller note.
GES is a provider of exhibition and event services through five specialized companies, including GES Exhibitions, Spiro, onPeak, SHOWTECH, and Visit. Through these five companies, GES provides a range of services including experiential marketing, event management, logistical planning, accommodation and meeting arrangements, as well as registration and attendee engagement services.
Customers of GES are active in several business verticals such as healthcare, aerospace and defense, financial services, manufacturing, technology, and retail, including Informa (trade show organizer), ICSC (International Council of Shopping Centers), AMT (Association for Manufacturing Technology), McDonald’s, Pfizer, Merck, and Boeing.
GES, with more than 2,600 employees, is headquartered in Las Vegas with 27 additional offices in the United States (13), Canada (5), United Kingdom (2), Europe (3), and the Middle East (4).
For the full year 2024, Viad has estimated that GES will have revenues of $258 million to $278 million and Adjusted EBITDA of $85 million to $95 million. Based on a midpoint Adjusted EBITDA of $90 million and a $535 million purchase price, this results in a valuation multiple of 5.94x.
GES was founded in 1939 as Manncraft Exhibitor Services and was acquired by The Greyhound Corporation in 1969, with the name changed to Greyhound Exhibitor Services. Greyhound sold its bus line business in 1987 and rebranded in 1991 as The Dial Corp., a consumer products company with hygiene and cleaning brands, including Dial Soap. In 1996, The Dial Corp split into two companies: the original Dial retained the consumer products business, while Viad Corp (NYSE: VVI) was created to manage the service-based businesses, including GES and other travel-related service businesses. Finally, in 2010, the company rebranded as Global Experience Specialists.
Post-closing, GES will be led by Derek Linde, the current president of GES, who will take on the added title of CEO. Mr. Linde will be joined by Jeff Quade, GES North America Exhibitions President; Jason Stead, GES EMEA Exhibitions President; and Jeff Stelmach, Spiro President, who will continue leading the operating businesses post-transaction.
“This is an exciting time for GES. The business has tremendous momentum, and our team is driving strong revenue growth, margin expansion, and client service,” said Mr. Linde. “The publicly traded Viad conglomerate has been a great home to GES for decades, and we are excited to start a new chapter as a private company with Truelink, who believes in our ability to continue delivering industry leadership, innovation, and growth.”
“GES is a trusted brand with a proven track record of delivering best-in-class services to the global exhibitions and experiential marketing verticals. We look forward to collaborating with this talented team to help the company realize its full potential,” said Luke Myers, a co-founder and managing partner of Truelink.
Truelink Capital invests in tech-enabled services and industrial companies that have from $20 million to $75 million in EBITDA. Service sectors of specific interest include business-to-business, education technology, financial technology, information technology, and software. Within industrials, sectors of specific interest include building products, chemicals, transportation and logistics, and packaging.
“GES’ deep-rooted leadership in the exhibition and event industry, combined with its strategic opportunity to further expand into the agency vertical through Spiro, positions it as an ideal investment for us,” added Mr. Myers. “We are thrilled to partner with GES’ exceptional and seasoned leadership team and will work together to continue to invest in the company’s existing service offerings while pursuing growth both organically and through strategic acquisitions.”
In July 2024, Truelink held a final close of its inaugural fund, Truelink Capital I LP, with limited partner commitments of $875 million, exceeding its target of $600 million and its original hard cap of $750 million. Los Angeles-headquartered Truelink was founded in May 2022 by Mr. Myers and Todd Golditch, former managing directors of Platinum Equity.
Baird and BrightTower were the financial advisors to Truelink Capital, and Moelis & Company was the financial advisor to Viad Corp.
The acquisition of GES by Truelink is expected to close before the end of 2024.
© 2024 Private Equity Professional | October 23, 2024
