DLJ MERCHANT BANKING PARTNERS ACQUIRES ADVANSTAR COMMUNICATIONS.

DLJ Merchant Banking Partners (New York), the merchant banking affiliate of Donaldson Lufkin & Jenrette, together with management, has agreed to acquire Advanstar, Inc. and its subsidiary, Advanstar Communications (Cleveland, OH), for in excess of $900 in cash and the assumption of $520 million in debt from Hellman & Friedman Capital Partners III (San Francisco, CA). Subject to governmental approval, the deal is expected to close in September or October.

Advanstar Communications was acquired by Hellman & Friedman in April 1996 for $237 million from Goldman, Sachs & Co. and other investors in Advanstar Holdings. Under H&F, Advanstar has grown significantly in both revenue and profitability, mainly through the 27 acquisitions completed since 1996. Annual revenue has increased from $187.7 million in 1997 to $259.8 million (+38.4%) in 1998 and $328.8 million (+26.6%) last year. The company had 1999 net income of $78.5 million.

Advanstar Inc. division Advanstar Communications publishes 103 business magazines and directories, produces more than 100 trade exhibitions and conferences, operates 79 Web sites, and provides related services in 19 industries, including fashion and apparel, travel and hospitality, specialty retail, healthcare, pharmaceuticals and manufacturing. Advanstar Inc. division Hive4.com, established earlier this year, develops Advanstar's Internet business and has current plans to launch over 20 b2b Web "communities."

DLJ Merchant Banking principal David Wittels noted that "Bob Krakoff and his team have built an impressive company and have a promising growth strategy for the future in both the traditional business communications market and in the extension of their business to the Internet." Advanstar chairman/ceo Krakoff said that "they are one of the leading private equity investor groups in the world, and their resources and relationships will enable us to continue our aggressive worldwide growth plans."

In related news, in a deal completed before its sale to DLJ Advanstar sold its plastics industry trade shows to Cram Communications (Detroit, MI). The acquired shows include the "Plastics Fair Expos" and the "Western Plastics Expo," which include the "Western Powder Shows." The acquired shows will be aligned with Crain's Plastic News magazine.