WPP finalises Kantar sales to strengthen balance sheet

Sale of brand consulting and analytics firm completed with Bain Capital earlier than expected

WPP has completed 90 per cent of the transaction to sell 60 per cent of Kantar, its global data, research, consulting and analytics business, to Bain Capital Private Equity, in a deal worth around £2.4 billion. 

Following final completion of the last 10 per cent of the deal in the first half of 2020, WPP said total aggregate net proceeds after transaction costs, tax and WPP’s continuing investment in 40 per cent of the equity of Kantar, are expected to be approximately £2.4 billion (AUD$4.6 billion). 

The Kantar transaction was originally announced on 12 July 2019. WPP intends to retain approximately 60 per cent of the net proceeds (approximately £1.4 billion) to reduce debt to the low end of the target leverage range of 1.5 – 1.75x average net debt/EBITDA 2 for 2020, and to return 40 per cent of the net proceeds (approximately £950 million) to shareholders. 

WPP announced the return to shareholders will be executed via a share repurchase program, which will commence shortly, with an initial tranche of approximately £250 million planned to be completed by March 2020. 

“The completion of the Kantar transaction, earlier than anticipated, achieves the objective we set out in December 2018 to strengthen our balance sheet, and substantially completes our disposal programme,” WPP CEO, Mark Read, said. 

“It is a major step in simplifying and focusing WPP, and we intend to return about 8 per cent of our share capital to shareholders through a buyback program. The partnership with Bain Capital means we will participate in the future growth of Kantar, as well as allowing our clients to continue to benefit from Kantar’s services.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.    

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Time is of the essence, especially for customer service teams. With chatbots, you can interact and assist customers at a larger scale, al...

Jai

Triple-digit customer database growth, personalised engagement become reality for Stone & Wood

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in