LONDON, July 30 /PRNewswire-FirstCall/ -- United Business Media today
announced that it has completed the acquisition of MediMedia's drug
information businesses in continental Europe and Asia, and all the trade
press, patient education and pharma marketing solutions businesses in
Germany, Benelux and Asia-Pacific. This includes major brands occupying
leading positions in 21 markets. The initial agreement to acquire this
business was announced on 1 June 2004.
The businesses have a long-established and consistent record of revenue
and profit growth. Synergies with UBM's existing healthcare business and the
scope for product expansion in existing and new territories will provide new
opportunities to boost performance.
The purchase price remains unchanged at EUR282.5m in cash. In 2003
turnover was EUR105.8m and EBITDA was EUR24.4m, with further growth forecast
in 2004. The acquisition should be earnings neutral in 2004 and is predicted
to increase earnings by more than 5 per cent in 2005. It is expected to
achieve UBM's cost of capital within two years.
The acquisition fits with UBM's strategy of building its core franchises
and extending its geographical coverage in key markets on attractive
financial terms. MediMedia's market leading products generate a high level of
recurring revenues and have good growth potential, which will be accelerated
in tandem with other UBM healthcare products.
This press release includes statements which are not historical facts and
are considered "forward-looking" within the meaning of Section 27 of the
Securities Act of 1933, as amended. These forward-looking statements reflect
UBM's current views about future events, business and growth strategy and
financial performance. These forward-looking statements are identified by
their use of terms and phrases such as "believe," "expect," "plan,"
"anticipate," "on target" and similar expressions identifying forward-looking
statements. Investors should not rely on forward-looking statements because
they are subject to a variety of risks, uncertainties and other factors that
could cause actual results to differ materially from UBM's expectations. UBM
expressly does not undertake any duty to update forward-looking statements.
Management does not attempt to update forecasts unless conditions materially
change.
SOURCE United Business Media Plc
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