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AAV UPDATE ON EVENTS BUSINESS ACQUISITIONS
Following on from the announcements on 23 June and 13 July 2006, AAV Limited provides the
following update on its Events Services business’ strategic acquisitions and the expansion of its
creative services capability:
Exhibitions and Trade Fairs Pty Limited (“ETF”)
Legal agreements for the acquisition of the Exhibitions and Trade Fairs were signed last evening with
completion scheduled for 1 September 2006.
The CEO of AAV Limited Michael Gardner commented “everything is on track for completion of the
acquisition of ETF at the commencement of September 2006. Securing this business will expand our
Events Services operations bringing into our service offering a number of trade shows and consumer
exhibitions held annually, biennially and triennially as well as bringing to us experienced staff who can
further enhance the existing Events Services business.
“The annual revenue and earnings stream for ETF can vary considerably over a three year period due
to the cycle of the various exhibition events as described above, however from the date of acquisition
by AAV, in the 2006/7 financial year, ETF will contribute revenues of some $12.0 million and an
expected EBIT of $2.75 million to our business. As previously announced, the acquisition will be EPS
positive from day one, bringing an expected increase in EPS for 2006/7 of 2.0 cents per share. AAV
paid $13.1 million for the business out of current cash reserves, payable $12.1 upon completion and a
further $1.0 million subject to agreed future achievements.
“I am very pleased that ETF is amongst the first of our acquisitions to be completed. It is a very good
business run by excellent people. The synergies between the businesses will create greater returns
for shareholders and help further secure Staging Connections leading market position.” said Mr
Gardner.
Stageworks Pty Limited
Mr Gardner commented “We are very excited to have completed the acquisition of Stageworks in far
North Queensland following final due diligence and documentation. Closing on Stageworks
demonstrates our commitment to strategically grow our Events Services Business, Staging
Connections, through targeted acquisitions where we see opportunities. Stageworks will enable us to
provide a seamless service offering capability in the Queensland and offshore island region. The
proposed acquisition will be earnings accretive from day one.
“Stageworks is the leading and largest events and staging operator in that region and we are looking
forward to developing its capabilities further and to working with its highly capable and talented staff.
“Stageworks will contribute revenues of some $3.0 million in the 2006/7 financial year and an
expected EBIT of $700,000 for the year. As previously announced, the acquisition will be EPS positive
from commencement, bringing an expected increase in EPS for 2006/7 of 0.21 cents per share. AAV
has paid $2.8 million for the purchase of the business sourced from available cash resources. An
initial cash payment of $2.1 million was paid upon closing and the balance of $700,000 is due on the
first anniversary of completion, subject to the achievement of certain earnings targets by the
business.” said Mr Gardner.
Creative Services - Paul Kenny to join Staging Connections
In a further move to expand its service offering, Mr Gardner announced today that AAV’s Events
Services business, Staging Connections, has engaged the services of one of Australia’s most
respected and experienced creative designers, Paul Kenny.
“In addition to acquiring strategic businesses, we have also been on the look-out for key people who
can join with us to bring a total service offering to the clients of our Events Services business. We are
excited that Paul Kenny, regarded as one of Australia’s most pre-eminent creative events designers,
has agreed to join us. Paul recently stepped down as Australian Chairman of one of the world’s
leading events groups, and has played a pivotal role in the development of numerous major global
events. These include the ceremony for the Melbourne 2006 Commonwealth Games as well as a
number of other major events for key clients world wide. Paul will work with the MD of Staging
Connections, Bill Davidson and be responsible for leading the creative direction of the business both
locally and internationally.” said Mr Gardner.
Global events expansion
AAV continues to monitor and review Australian/New Zealand Event Services business opportunities
to ensure that it provides a leading edge total service to its clients.
In addition to these initiatives, due diligence is well underway in two opportunities in SE Asia and
another in the Middle East.
“We are excited by the potential for Staging Connections and these businesses to form core regional
bases as we build on the global business case we implemented with the opening of Beijing and
Shanghai operations earlier this year. We have yet to finalise due diligence and have not yet reached
final agreement for the acquisition of these businesses. AAV will make appropriate announcements
when these have been concluded.” said Mr Gardner.