Emap is one of the UK's leading business information providers
serving the retail/fashion, public services, construction, media
and automotive industries. The Company provides information to its
customers through four key formats: print and online magazines (35%
of 2007 revenues); exhibitions and festivals (32%); digital
information services (27%); and conferences (6%).
As well as publishing, the business also organises three of the
top four UK trade exhibitions, has the leading publication in most
of its core market segments, runs the pre-eminent international
advertising festival (Cannes Lions) and, with WGSN (a provider of
digital information to the fashion industry), has a high-growth and
market-leading information services business. Approximately 75% of
revenue is generated in the UK and 25% from international sources
including the high-growth Middle Eastern market.
The company's business model has evolved from being largely
reliant on print advertising to being far more diverse and
resilient and thus able to tap different corporate budgets other
than advertising.
Close to 75% of Emap's brands are number one or number two in
their market. Because of this leadership, the brands are highly
valued by customers and enjoy high renewal rates. They also benefit
from a flight to quality in a more challenging trading environment
when customers will cut budgets on second tier brands rather than
reducing spend on the market leader.
Identify
The investment
Apax Funds, alongside corporate partner Guardian Media Group,
acquired the business as a result of the three-way break-up of Emap
plc at the end of 2007. The break-up led to the sale of the
consumer publishing and radio divisions to Bauer Media, a large
German media conglomerate, while Apax Funds and GMG took private
the remaining B2B division and umbrella "plc" organisation.
The strong existing partnership between Apax Funds and GMG
through their joint ownership of Trader Media Group in the UK
proved to be a decisive competitive advantage in securing the
coveted B2B titles. Apax Partners also had a strong 'angle' because
of its existing investment in the B2B sector with Incisive
Media.
Support
In the nine months to December 2008, Emap's revenue grew 3% year
on year. This growth was achieved against the back-drop of a
difficult trading environment in Emap's core UK market where the
key end markets it serves, retail and construction, experienced a
significant downturn. This was partly compensated for by a strong
performance in its public sector end market. In comparison to other
media companies, Emap has shown a good degree of resilience,
largely as a result of having a streamlined portfolio of market
leading products that benefit from customers concentrating budget
spend on the market leader.
Since the initial investment, which completed at the beginning
of 2008, Apax Funds and GMG have worked with the company to
complete the senior management team, including hiring David
Gilbertson as buy-in CEO from Informa. The Group has also been
fundamentally restructured along product lines, with new reporting
lines put in place and a new set of performance indicators
introduced.