*

Clarion could be valued around 2 billion pounds, source

says

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CVC, KKR, PAI, Ardian, Hillhouse are interested, sources

say

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Market turmoil sparked by Trump's tariffs has hit

dealmaking

By Amy-Jo Crowley and Emma-Victoria Farr

LONDON/FRANKFURT, May 20 (Reuters) - Blackstone

has kicked off the sale of Clarion Events, four people familiar

with the matter said, in a test of demand for takeovers after

weeks of market turmoil stymied dealmaking.

Blackstone bought Clarion, which runs international trade

shows in electronics, gaming, energy, security and defence, in

2017 for 600 million pounds ($802 million) and supported it

through the COVID pandemic, when the events industry came to a

sudden halt, hammering the company's revenue and earnings.

The U.S.-based private equity fund distributed information

memoranda earlier this month and has drawn interest from funds

including CVC, KKR, PAI Partners and Ardian, the four people

said, speaking on condition of anonymity.

Asian private equity firm Hillhouse Investment is also

interested in Clarion, which hosts trade shows in China via its

Global Sources business, one of the people said.

Clarion could fetch around 12 times earnings before

interest, tax, depreciation and amortisation, that person said,

potentially valuing the company around 2 billion pounds. Reuters

reported last year that Blackstone had started exploring options

for the business.

Spokespeople for Blackstone, KKR, Hillhouse, CVC, PAI

Partners and Ardian declined to comment. Clarion did not

immediately return requests for comment.

The business would be one of the biggest private equity

assets to come to market after weeks of volatility triggered by

U.S. President Donald Trump's tariff policies, which led to the

biggest decline in dealmaking globally for 20 years.

Blackstone has been waiting for clarity on the economic

outlook and the impact of Trump's tariffs before launching the

process, the people said. Clarion has been managing its cost

base and cashflows and monitoring economic pressures, it said in

a review of the first half of its 2024-2025 financial year,

adding that cashflows were outperforming budget.

There is no guarantee that a deal will emerge, the people

said.

Investor sentiment has picked up in recent weeks after the

U.S. and China agreed to temporarily slash tariffs. Share

benchmarks in Europe and the U.S. have recovered

from their tumbles after Trump's April 2 tariff announcement.

Prada's $1.38 billion purchase of smaller rival Versace from

Capri Holdings ( CPRI ), DoorDash's ( DASH ) $3.6 billion offer for Deliveroo ( DROOF ), and

KKR's $3.1 billion deal for post-trade services business OSTTRA

are among deals that have reached the finish line.

Clarion, which organises the London International Horse Show

among other events, saw revenue jump to 432.9 million pounds in

the 12 months through January 2024 from 257 million pounds a

year earlier, as the industry returned to normal in China and

Hong Kong, according to its most recent results.

($1 = 0.7484 pounds)