Following the conclusion of a strategic review, Birmingham City Council has resolved to seek offers for the NEC Group, including its ancillary companies such as Amadeus, the catering business.
Principal objectives of the proposed sale are to secure an investor who shares the vision and strategic ambitions of the NEC Group and to maximise the proceeds for Birmingham City Council. Bringing the NEC Group under private ownership will enable the business to take full advantage of its growth opportunities and reach the next stage of its development.
Economic contributor
The NEC Group is a vitally important contributor to the West Midlands economy, delivering an economic impact of over £2 billion p.a. and supporting some 29,000 FTE jobs in the region. Securing and enhancing this economic impact is a key objective for Birmingham City Council.
A strong NEC Group attracts further economic activity to the region. This has been evidenced strongly through securing the £140 million plus investment into Resorts World Birmingham by Genting UK. The NEC Group’s position would be strengthened through private sector ownership, and this should act as a catalyst for further investment in the region.
In structuring a transaction, the City Council intends to ensure that the existing uses of the exhibition centre, International Convention Centre and two arenas (LG Arena and National Indoor Arena) are preserved. This will secure the profile of Birmingham and the broader West Midlands as a world-class home of a broad array of live events.
Leading venue management company
Since the opening of the National Exhibition Centre in 1976, with seed-corn investment from the City Council, the NEC Group has broadened its business and through the subsequent openings of the NEC Arena (1980), the International Convention Centre (1991) and the National Indoor Arena (1991), the Group has evolved into one of the world’s leading venue management companies.
In addition to its four venues, the NEC Group has successfully established a number of related businesses. These include a national ticketing agency (The Ticket Factory), a catering business (Amadeus) and NEC Group International which is taking its venue management expertise into the operation of third party-owned venues.
The NEC Group’s fast growing ancillary businesses do not have the risk profile normally associated with a local authority-owned business. A private sector owner is likely to have greater appetite to invest more capital in these businesses, and to be able to support the growth of the NEC Group internationally.
Martin Angle, Chairman of the NEC Group, adds:
“The NEC Group comprises four of the best-known and most well-established venues in the UK, located at the heart of England and boasting unrivalled accessibility by all modes of transport. The Group has weathered the challenging economic environment and has a clear vision for its future growth.
“We look forward to working with Birmingham City Council in preparing the NEC Group for this major step forward and believe that its iconic status and portfolio of venues and businesses is likely to attract strong interest from potential buyers, from both the UK and overseas.”