WPP and Bain Capital are reportedly exploring the sale of Kantar, their collectively owned market analysis agency. The transfer comes as WPP seems to be to strengthen its monetary place following a drop in its share worth and challenges within the promoting market, as reported by Monetary Occasions.
WPP bought a 60% stake in Kantar to Bain Capital in 2019 for round $4 billion, holding onto the remaining 40% to maintain strategic ties. The sale was a part of CEO Mark Learn’s plan to chop debt and simplify operations after years of fast enlargement. Now, with challenges within the promoting market and strain on its inventory, WPP is contemplating promoting its remaining stake, doubtlessly valuing Kantar at as much as $8 billion, together with debt.
WPP is working with advisers to evaluate choices for its 40% stake in Kantar, together with a possible sale or a deal that might see Bain Capital take full possession. The choice comes after earlier plans for an IPO have been reconsidered as a consequence of difficult market circumstances.
Now, WPP and Bain Capital are reportedly exploring the choice of splitting Kantar into separate divisions, together with its fast-growing Chicago-based unit, Numerator, to maximise returns by way of particular person gross sales. Analysts estimate that WPP’s share of the proceeds could possibly be between $1.2 billion and $1.6 billion, relying on the ultimate deal construction and valuation. Since buying a majority stake, Bain has centered on remodeling Kantar right into a extra tech-driven enterprise, with acquisitions like Numerator enhancing its client insights choices.
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