International asset management firm Blackstone initiated the sale of Clarion Events, a London-based event management company. People familiar with the developments confirmed that the timing is perfect as global markets are gradually stabilising following prolonged disruption.
Key Points from the Story
- Blackstone acquired Clarion for £600 million in 2017. The company is now worth approximately £2 billion.
- CVC, Ardian, PAI, KKR, and Hillhouse have expressed interest in acquiring Clarion Events.
- Investor interest stabilised in recent weeks after the US-China trade war came to a temporary halt.
Blackstone to Get Major Returns if the Deal Goes Through
Blackstone purchased Clarion in 2017 for £600 million and supported them during the COVID phase when the events industry came to a grinding halt. The US-based equity firm announced plans to offload Clarion Events earlier this month. Five potential investors have expressed interest so far.
The list of potential buyers includes Hillhouse Investment, KKR & Co. Inc., CVC Capital Partners, PAI Partners, and Ardian. There is no official confirmation from Blackstone or any of the potential buyers at the moment. However, four people familiar with the developments confirmed the details anonymously.
The Clarion sale could generate £2 billion before depreciation, taxes, and amortisation, giving Blackstone a 1200% ROI. If a deal goes through, it would be the biggest private equity asset to hit the market after months of uncertainty triggered by US President Donald Trump’s decision to impose hefty tariffs on Chinese imports.
Deal Timing Reflects a Changing Shift in Investor Sentiment
Blackstone has been patiently waiting for the tides to turn. The decision to offload Clarion now hints at the markets stabilising post the US-China trade war. Clarion has been managing its cash flows and cost basis and monitoring economic pressures. According to reports, the company’s cash flows outperformed its budget in the first half of the financial year 2024-2025.
Equity sales had dropped to a two-decade low following Trump’s tariff policies earlier this year. However, recent developments, including a temporary relief of the US-China tariff, have improved investor sentiment. Stock indices across the US and Europe have gradually stabilised, and deals are slowly being made again.
Some very prominent acquisitions materialised in the past few weeks. Prada’s £1.03 billion takeover of Versace from Capri Holdings, KKR’s £2.31 billion offer for post-trade solutions firm Osstra Group Ltd., and DoorDash’s £2.69 billion deal to acquire Deliveroo reflect the positive market outlook.
Clarion Events, which organises international trade shows in electronics, security, energy, gaming, and defence, including the prestigious London International Horse Show, recorded a £432.9 million jump in revenue in 12 months through January 2024. The figures went up from £257 million in the previous year as the markets in China and Hong Kong normalised after the COVID wave.
Clarion plays a central role in the gaming and online gambling industry by championing businesses and fostering connectivity across both traditional and online gambling sectors, with its success largely attributed to a balanced approach that combines focused expertise and flexibility. Its unique model of creating “villages” within an event, combined with the need, value, and purpose-based framework for customer engagement, has allowed it to scale while remaining relevant.
Liz Irving, the President of Clarion North America, explains:
Customer engagement is more important now than ever before. It’s all about how meaningful our offerings are to customers that make sure they return.
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