ATE's New Guardian in the Hot Seat
In July, UK trade association BACTA ended one of the longest and most successful relationships in the industry when it sold its controlling interests in ATE Ltd. to Clarion Events. In his first interview with the international trade press, Clarion's Managing Director, Simon Kimble reflects on the acquisition and the opportunities that lie ahead.
Q. It's fair to assume that few of the international visitors to ATEI and ICE will have heard of Clarion. Can you provide some background on the company, when it was formed and who owns it?
Clarion started off as Philbeach Events and then became P&O Events, which was part of the Earls Court and Olympia Group. The company changed its name to Clarion Events following the acquisition of Earls Court and Olympia by Andrew Morris in October 1999. A management buy-out took place in October 2004, 33.33 per cent owned by the current management and the remainder retained by Hg Capital.
Q. How would you describe Clarion as a company in terms of philosophy and objectives?
We are a young, ambitious company that's looking to excel in everything we do. The way we achieve that is by empowering our people to make decisions, rather than imposing a rigid corporate structure. ATE has assembled a team of people who have won success by knowing their industries and working with them. That is exactly what we look for and we want to help and support in any way that we can. If I was to describe our business culture in three words, I would say that it's entrepreneurial, fun and people-centric – in that sense I think we're quite similar to the gaming and gambling industries.
Q. What other events are in the Clarion portfolio and how do ATEI, ICE and the other aspects of the ATE business fit in?
Our portfolio covers a multitude of industries including finance, fine arts, caravans, interior design … we even have an event for expectant parents! So you could say that the inclusion of a business with such strong links to gaming and gambling is unusual. However, it was the quality of the ATE products and their reputation in the market that made the acquisition so attractive to us.
Q. Will ATEI/ICE be the biggest show in the Clarion portfolio?
We have a total of 44 events and ATEI is amongst the top ten in terms of floor space.
Q. How did Clarion's interest in ATE come about?
I have been a long-time admirer of the exhibitions and, being based at Earls Court, I've seen them in their operational glory. They are spectacular, high energy events. No one could fail but to be impressed, and when we learned that BACTA might be looking to sell we started the long process which culminated in July.
Q. Why did the sale take so long to complete?
Lawyers and accountants! Seriously, we were willing buyers and I guess that BACTA were making sure that they got a good auction going involving other potential purchasers. I don't think that for any sinister reason BACTA was slow; the process always takes longer than people would imagine.
Q. You haven't gone public on the price you paid, but do you think you achieved value?
As I mentioned earlier, we are an entrepreneurial organisation and we are comfortable about the scale of the investment, even though it was a significant sum of money. How it will be judged as a deal – only time can tell.
Q. Did the prospect of new gambling legislation influence your decision to purchase?
Clearly it's beneficial to be operating within a progressive legal framework. Legislative change is driving the industry and as such will generate opportunities for those involved. However, the purchase was based on ATE being a lead company, delivering lead products. Any legislative changes that may take place are a bonus.
Q. You purchased ATE as a package. What components of the business interest you most and will you be offloading those that interest you least?
ATE has got a lot of concentric circles around itself all operating at the heart of the industries that it serves: this makes it an extremely interesting proposition. Up until now, Clarion has had no publishing or conference experience, so we want to learn and expand across our own portfolio. Our management task is to harness the synergies that exist.
Q. Do you plan to make any immediate changes to the business?
The ATE management are already ensuring that the shows improve on a year-on-year basis. As such, it would be arrogant of me to say that we can improve it. The ATE acquisition is a very important deal; it's a lot of money and we want to get it right. The most important aspect is to get the integration of ATE into Clarion right and make everyone feel comfortable.
Q. Where do you see growth in the ATE business coming from?
The team has already launched the Visitor Experience Show as part of the mix for 2006, and it's selling well. We need to look at the business over the next few months to identify other opportunities. Our main priority at this stage is to ensure a smooth integration.
Q. Do you think that there are benefits of ATE not being owned by a trade association?
It would be foolish to deny the tension that existed between BACTA's interests and the casino industry's interests in the debate over the content of the new Gambling Bill. That was no one's fault, but it will no longer be an issue. I hope, as a consequence, that we will be able to achieve a better synergy between ATEI and ICE.
Q. Clarion has been active on the acquisition trail; is there more to come?
Whilst it's our responsibility to keep our eyes open for opportunities that fit strategically for us, if they come too early we will have to turn them down. Integrating ATE and getting that right is at the top of my agenda, but there will be more acquisitions in time.
Q. Does this represent a steep learning curve for you personally and how do you propose approaching it?
This is my first foray into the international gaming and gambling industries, so yes, the curve is a steep one. We rely heavily on the people running the events to make the decisions. There's an awful lot to learn and it will take time, but I have total confidence in the team to continue doing a great job.
Q. Does talk of rival shows concern you?
We cannot afford to be dismissive, complacent or naïve. Any industry is open for competition – the way that we counter that is by making sure that we continue to put investment into the product and giving the industry reasons to support us. All we can do is continue to move forward, continue investing and continue being sensitive to the needs of our customers.
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