UBM to Buy Paper Industry Analytics Firm

British-based United Business Media (UBM) is to buy Shanghai, China-based analyst and information provider UM Paper from Samwell Group, to complement its Boston-based forestry and paper industry intelligence business RISI. The maximum payable will be $880,000.

Payment consists of an initial cash consideration of $440,000 and up to the same amount again in performance-related bonus over two years.

UM Paper employs eleven staff, and provides China-based clients with paper industry information and pricing intelligence, notably regional and historic pricing trends in paper commodities. It is expected to generate revenues of around $300,000 in 2010. Samwell Group's Chair Elaine Zhang will remain with the business as a senior advisor.

UBM says the buy is 'highly complementary to RISI's existing presence in China', which is the world's largest market for forest products. RISI CEO Mike Coffey comments: 'I am very pleased to welcome both the UM Paper team to RISI and also our new senior adviser Elaine Zhang as we look to develop our services in China.' Coffey says the firm's ambition is 'to become the leading information provider for the paper and board industry in China.'

UBM has 5,900 staff in more than 30 countries, focused on two principal activities: worldwide information distribution, targeting and monitoring; and the development and monetisation of B2B communities and markets.

For regulatory reasons, the transaction will be implemented through a nominee on behalf of RISI and is subject to registration in the PRC. The transaction is expected to complete within the next two weeks.

Web sites are at www.ubm.com and www.risi.com .