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

Conversations over a cuppa with CMO: ABC's Leisa Bacon

In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.

More Videos

Remote working has gained a lot of attention in the past few months. And the key driver to the smooth workflow of remote working is obvio...

varun

How to manage social media during Covid-19

Read more

Hi everyone! Hope you are doing well. I just came across your website and I have to say that your work is really appreciative. Your conte...

Rochie Grey

Will 3D printing be good for retail?

Read more

Zero proof spiritsUsa since 2011 www.arkaybeverages.com🤪🤟

Sylvie

How this alcohol-free spirits brand rode the health and wellness wave

Read more

okay this a good newsmaybe i gonna try it

kenzopoker1

CMO's top 8 martech stories for the week - 9 July 2020

Read more

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

Blog Posts

Why CMOs need a clear voice strategy to connect with their customers

Now more than ever, voice presents a clear opportunity to add value to an organisation in many ways. Where operational efficiencies are scrutinised, budgets are tighter and discretionary consumer spend at a low, engaging with an audience is difficult.

Guy Munro

Head of innovation and technology, Paper + Spark

MYOD Dataset: Building a DAM

In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.

Kshira Saagar

Group director of data science, Global Fashion Group

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Sign in