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Emerald Expositions (NYSE: EEX) in San Juan Capistrano bought Connecting Point Marketing Group in Rye, N.H., for $37 million.
Emerald runs events that include trade shows, conferences, awards shows and luxury sales gatherings.
CPMG runs nine senior executive events that are private, invitation-only, and “hosted”—meaning the company pays for buyer-attendees to come, and generates revenue from show suppliers and sponsorships. This “curated” format produces “personal interaction [and] demonstrable ROI,” according to a statement.
Hosted shows are a niche within the trade show industry. A securities filing said the two companies' cash flow characteristics are similar but that CPMG's "historical EBITDA margins have been approximately half" that of Emerald's.
Emerald is majority-owned by Toronto private equity firm Onex Corp., which bought it for $950 million in 2013. It went public in April, raising $300 million and traded recently at a $1.6 billion market cap.
CPMG has been owned by lower-middle market L.A. private equity firm Corridor Capital LLC, mezzanine investor Aldine Capital Partners Inc. in Chicago, and management.
It was founded by Nancy Splaine and Kim Haulk in 2004 and has 19 employees.
Splaine, senior vice president, will report to David Loechner, Emerald’s chief executive.