MILLEWR FREEMAN EUROPEAN PRINT/EXHIBITION GROUP SOLD TO REED ELSEVIER.

Closing following the sale of the publishing and U.S. assets of Miller Freeman (San Francisco, CA) to VNU, United News & Media (London) has sold Miller Freeman's European exhibition and publishing group to Reed Elsevier (London) for EU 585 million ($546 million). The purchase of MF's French, Spanish and Italian businesses has been completed. The purchase of MF's German business needs to be approved by regulators, while the purchase of its Scandanavian assets requires the consent of a joint partner.

Miller Freeman's European assets will be integrated into Reed Exhibition Companies. Properties include over 100 trade shows in such sectors as building and construction, retail, food and hospitality, and environmental services, print titles, including Farmers Guardian, Franchise International, PSI-Journal and over 50 business titles for the Italian market, and 66 related Web sites. The unit had 1999 revenue of EU 179 million, making the purchase price 3.27 times revenue, and operating profit before interest and tax of EU 46 million. Reed Exhibition Companies reported 1999 revenues of EU 458 million. The acquired business operates with negative working capital and, as of Dec. 31, 1999, had net operating liabilities of EU 31.4 million.

Reed Elsevier ceo Crispin Davis said the purchase "is a significant step in the expansion of our exhibitions business in key markets and into b2b publishing in Italy." Following the acquisition, Reed Exhibition Companies will own and operate over 440 events in 29 countries. Pro forma gross revenues in 1999 would have been EU 637 million ([pound]419 million).

In related news, Reed Exhibition Companies (Norwalk, CT) is launching "Packaging E-Business Expo" in early November in Chicago. The show was established in response to the exclusion of most dot-com companies from "Pack-Expo," a packaging machinery show being held at the same time in Chicago.