WPP sells majority stake of Kantar to Bain Capital

Must Read

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged...

Ankara Styles For Slim Ladies: Top 5 Looks You Must Try! (Pictures)

Today’s fashion of Nigeria shows off plenty of Ankara styles for slim ladies, that will help them to create a...

Midea Showrooms And Stores In Nigeria

If you’ve been wondering where Midea showroom and stores are in Nigeria below is a list of Showrooms and...
- Advertisement -
- Advertisement -

WPP has agreed to sell a majority stake of its market research company Kantar to private-equity firm Bain Capital.

The agency holding group confirmed on Friday (12 July) that it has reached an agreement to sell 60% of Kantar to Bain, as part of chief executive Mark Read’s strategy to reduce debt and simplify the structure of the company.

The deal values Kantar at $4bn (£3.19bn). Proceeds to WPP on completion after tax and continuing investment in Kantar are expected to be about $3.1bn, the group said.

WPP said it will use 60% of the net proceeds to reduce debt and expects to return circa $1.2bn of the proceeds to shareholders.

According to reports, Bain entered into exclusive talks for Kantar last week after beating rival companies Apollo Global Management, Platinum Equity and Vista Equity Partners.

Read:  WPP to sell Kantar in an auction this month

In a release announcing the deal, Read said the sale “creates value for WPP shareholders and further simplifies our company”.

He added: “Kantar is a great business and we look forward to working with Bain Capital to unlock its full potential. As a strategic partner and shareholder in Kantar, WPP will continue to benefit from its future growth, while our clients continue to benefit from its services and capabilities.”

Luca Bassi, a managing director at Bain, said the firm sees “many opportunities for expansion” in Kantar.

“We will invest in technology to expand the company’s capabilities and reinforce its global leading position,” he added.

Read:  Uber is working on plans to bring its Bus system to Lagos

Another Bain managing director, Christophe Jacobs van Merlen, said the firm has “confidence” that it can grow Kantar “both organically and by acquisition”.

Read:  PZ Cussons Nigeria posts Q1 loss amid lower revenue growth, challenging market conditions

Kantar chief executive Eric Salama said the new ownership structure “presents a great opportunity for Kantar, our employees and our clients”.

He continued: “In Bain Capital, we have a partner who shares our ambition, brings relevant expertise and – with WPP – can help us accelerate our growth and impact for clients. We are focused on delivering ‘human understanding at scale and speed’ and the ‘best of Kantar’ more consistently. We will do so by investing more in talent and by becoming a more technology-driven solutions provider.”

The sale is subject to approval by WPP shareholders and other customary regulatory and legal approvals.

Bain was advised by Canson Capital Partners, Credit Suisse and Mediobanca.

A version of this article was first published on Campaign Asia-Pacific

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Samsung Presents Galaxy A10s, A20s and A30s For New Smartphone Generation

Samsung yesterday unveiled new members of the Galaxy A Series smartphones – the Galaxy A10s, A20s and A30s. These...

Federal Govt & World Bank To Debate $3 Billion Power Sector Loan

Ndubuisi Francis, Obinna Chima, Kunle Aderinokun, Nume Ekeghe and Nosa Alekhuogie in Washington DC. The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed,...

Choosing the Right Wear Protection for Ground Engaging Tools Through Customized Solutions

WESTBURY, NY - EQS NEWSWIRE - October 18, 2019 - Oerlikon Metco customizes hardfacing alloys for specific applications and processes to protect GETs for mining and construction applications.Ground Engaging...

Yankee Candle Celebrates 50 Years of Candle-Making and A ‘Scent-Evoking’ 10 Years in Singapore

SINGAPORE - Media OutReach - 18 October 2019 - Yankee Candle®, America's best-loved candle, celebrates its 50th anniversary and ten years in Singapore this year. Founded by Mike Kittredge in 1969, Yankee...

More Articles Like This