by Ray Smith, Exhibit City News
Continuing recent tradeshow industry consolidation, Freeman has announced the acquisition of Sparks, an experiential marketing agency, in a move to dominate space in corporate events and exhibits. The news follows Nth Degree’s acquisition of Fern in June.
Sparks, based in Philadelphia, will complement Freeman’s industry expertise and operations, positioning the company to accelerate growth by meeting the evolving needs of corporate clients and show organizers.
“Acquiring Sparks creates a unique opportunity to expand Freeman’s capabilities to better support our corporate customers,” explains Janet Dell, president of Dallas-based Freeman, in an email to ECN. “Sparks complements our existing offerings so we can provide corporate customers with the best-in-class service for events, exhibits, and brand experiences.”
Financial terms of the acquisition were not disclosed. Financing was provided by KKR primarily through KKR Opportunities Fund II and accounts participating in its strategic investments.
EagleTree Capital, which initially invested in Sparks in 2020, has pulled out of its investment following the company’s sale to Freeman.
J.P. Morgan is serving as a financial advisor to Freeman, and King & Spalding is serving as Freeman’s legal counsel. Cozen O’Connor is providing legal counsel to Sparks, with Simpson Thacher & Bartlett serving as legal counsel to KKR.
CREATING AN EXPERIENCE
Founded in 1919, Sparks provides exhibit experiences to a diverse group of brands, including Google, Salesforce, Anheuser-Busch InBev, and T-Mobile. They’ll join Freeman’s award-winning agency business, which also caters to major clients such as Amazon, Cisco, and Kohler.
“Integrating Sparks with our Freeman agency business is about growth and expansion to better serve our customers and create events that deliver results for our customers,” Dell says.
The two companies are leading brands in the event space with complementary skills. “Combined, Freeman and Sparks have the best teams and experience to create unforgettable moments,” the Freeman president adds.
Sparks is easily one of the top 10 exhibit firms in the nation, on a level with George P. Johnson, Derse, MC2, Astound, and ImpactXM. Their client list is top-tier.
Freeman has 4,576 employees and revenue of $2.9 billion in 2022, according to Zippia. Sparks has more than 750 employees. The companies will integrate and continue to deliver great events for customers under the name “Sparks, a Freeman Company,” Dell says.
LEADER IN THE CORPORATE SPACE
In a company statement, Freeman CEO Bob Priest-Heck says, “Our combination with Sparks creates a unique opportunity to accelerate Freeman’s vision to become a leader in the corporate space. Sparks, like Freeman, is built by great people, has a long history of success, and is one of the most respected names in the industry.”
David Sudjian, the chief executive officer of Sparks, says, “I am thrilled about the immense potential Freeman and Sparks have together. Our exceptional teams are eager to collaborate and leverage our strengths to create extraordinary experiences. The alignment of culture and values between Freeman and Sparks truly sets this combination apart, fueling our ability to deliver remarkable moments worldwide.”
Freeman acquired Sparks in an effort to become the nation’s No. 1 full-service agency, and this deal solidifies that position. Its major competitor, GES, uses Spiro, another global brand experience agency, to strengthen traditional event management and offer new capabilities to deliver a heightened experience. It makes sense for Freeman to do the same.
“It’s been an exciting year for the trade show and event marketing industry,” says Dan Greene, an industry veteran and M&A expert with Nolan Advisory. “This deal provides an opportunity for both companies and their clients. In addition to gaining market share and cash flows, both companies gain access to complementary offerings and Freeman’s sophisticated infrastructure. Sparks’ reputation for larger, program-based clients offers Freeman quality revenues that can service any debt financing the deal may have required.”
ECN’s Editor Li Jackson contributed to this report.
About Freeman
Freeman is a global leader in events, on a mission to redefine live events for a new era. With a data-driven approach and the industry’s largest network of experts, Freeman’s insights shape exhibitions, exhibits, and events that drive audiences to action. The integrated full-service solutions leverage a 96-year legacy in event management as well as new technologies to deliver moments that matter. For more information, please visit https://www.freeman.com/.
About Sparks
Sparks is a live + digital experiential marketing agency. We specialize in creating connection–real human connection–onsite, online, or anywhere. Through a thoughtful mix of sound strategy, next-level creative, and flawless execution, we create memorable trade show exhibits, live and virtual events, brand activations, and other immersive experiences that deepen relationships, inspire action, and build trust–and we do it all over the world. To learn more about Sparks, visit us at https://www.wearesparks.com .
