LDC is to acquire Birmingham’s The National Exhibition Centre Group in a transaction which values the business at around £307million. The transaction transfers the NEC into private ownership for the first time and allows the business to more easily realise available growth opportunities.
The NEC Group comprises the UK’s leading live Exhibition, Arena and Conference venues; the National Exhibition Centre itself, the Genting Arena, the Barclaycard Arena (formerly the National Indoor Arena) and the International Convention Centre, as well as the NEC’s other commercial activities including The Ticket Factory, specialist catering business, Amadeus and the NEC’s third party venue management operations.
As part of the transaction, LDC will also acquire Birmingham City Council’s interest in Genting Resorts World at the NEC site; a new £200million integrated leisure and entertainment complex, comprising four and five star hotel and spa, destination retail offering, a range of internationally-themed restaurants and bars, 11-screen cinema with state-of-the-art digital technology, and one of only three ‘Large-Casinos’ in the UK offering a contemporary and exciting gaming experience.
The NEC will operate the Vox Conference and Banqueting facility at Genting Resorts World, to complement and enhance its wider Exhibition, Conference, Live Events and Arena Shows offering at the NEC site.
Birmingham City Council retains its interest in the Metropole and Crowne Plaza hotel leases.
Martin Draper, Chief Executive Officer, LDC, commented:
“The NEC Group has developed significantly over recent years and we’re delighted to be working with such a strong and experienced team to deliver the NEC’s next exciting phase of development.”
Major contributor to the West Midlands economy
Widely regarded as an iconic British business, the NEC Group is a major contributor to the West Midlands economy, delivering an estimated economic impact to the region of more than £2billion per annum and supporting some 29,000 jobs. The business has hosted events as diverse as G8 and European Union summits, political and industry conferences, Horse of the Year Show, Crufts and virtually all of music and comedy’s global stars.
In recent years, the NEC has successfully implemented a number of important strategic initiatives which strengthen its market position, including an extensive £100million refurbishment and upgrade programme and through diversification into related commercial activities.
LDC will be working alongside the NEC’s current management team, led by Chief Executive Paul Thandi, to deliver further strategic organic and acquisition-led initiatives across all business channels, both in the UK and overseas.