As an integrated Group operating in all event professions, GL events works in three major segments:
event organisation, event venue management and services for fairs, congresses and events.
© Odile Decq architect / Felice Varini – Altitude 150
Générale Location announce the acquisition of Cofrata, a recognized specialist in engineering services for congresses and conventions. This transaction will strengthen GL's position as the leading European provider of event engineering and logistics services.
Cofrata is a major provider of organizations services for congresses
Founded in 1987, Cofrata organize more than 35 professional events, congresses or conventions per year in France and Europe. With a staff of 42 professionals, the company has sales of € 14 million with an operating margin higher than the Group's.
Cofrata's services cover all stages of the process from design to the actual organization of the event: defining concepts, establishing budgets, finding an appropriate venue, implementing a management organization, providing dedicated secretarial services, promotion and hotel reservation.
Based in Toulouse and Paris, the company has a solid track record particularly in the medical sector in which it has a significant number of customer references including La Société Française de Transfusion Sanguine or Euro PCR (an interventional cardiology seminar with 8.500 participants every year).
In line with the group culture, Cofrata's management and professionals will pursue their activities within GL, contributing in this way to the rapid integration.
Significant synergies with GL's businesses
This acquisition completes and strengthens the range of services already proposed and will:
1) strengthen the Venue and Event Management division: GL will optimize venues under management by the addition of new events. This will in turn make the Group even more attractive to local authorities considering entrusting the management of their sites to a private player.
2) develop the market for Global Services: congresses or conventions offer a significant volume of recurrent business in an area where GL benefits from strong growth prospects.
3) complete a "comprehensive" vertical range of services: with this acquisition, GL further broadens its range of expertise. Through its fully integrated range of services, GL is able to offer a unique and comprehensive solution.
GL continues to pursue its strong growth strategy while maintaining its objective of acheiving further gains in profitability
The acquision of Cofrata should provide GL with significant and immediate synergies. Furthermore, given the company's high level of profitability and solid fundamentals, its contribution should have a relutive impact of around 5% in the current period. The acquisition PER ratio is in line with previous acquisitions.
The acquisition of 75% of Cofrata's shares will be accompanied by an exchange of shares for the remaining 25% within the framework of a reserved capital increase*.
The impact of this acquisition on the debt-to-equity ratio willl be 7%.
*This must comply with the terms retained by the COB and be approved by a forthcoming Extraordinary General Meeting.
Next important date:
Annual meeting: 20 June 2003 - 11am - Palais des Congrès Lyon
2002 first-half sales: 24 July 2003
GL events, bringing people together
Managing Director Corporate Finances and Administration : Erick ROSTAGNAT
Telephone : + 33 4 72 31 54 20
Fax : + 33 4 26 20 42 00
Email : email@example.com
Code ISIN : FR0000066672
Code Bloomberg : GLO FP
Code Reuter : GLTN.PA
Code FTSE : 581