It was recently announced that WPP will be selling its majority stake in Kantar to Bain Capital. WPP will be selling 60% of its stake in Kantar to Bain Capital. Kantar is currently valued at around $4bn. Recently the company confirmed that it was in discussions with the private equity firm after reports emerged that it was looking to cap an auction for the business. The deal has finally been sealed and the private equity firm will be owning a majority stake in Kantar.
WPP to Sell Majority Stake in Kantar to Bain Capital
At the time when the discussion announcement was made, WPP chief executive Mark Read stated that there was no certainty that these discussions will result in a transaction. He stated that the company will be holding on to 25-40% of the company. The sale is expected to go through in early 2020. But it is subject to approval from WPP’s shareholders and government regulators. Bain Capital was competing against Apollo Global Management, Platinum Equity and Vista Equity Partners in the final round of bidding.
According to Read, this sale will strengthen Kantar with the expertise and resources of Bain Capital. According to Drum, the focus of Kantar post-sale will be on investing in technology. They will invest in technology that will allow the business to work harder, better and faster for clients. The company believes that selling to the private equity company will see Kantar’s model and processes evolve faster.
WPP Speaks on Selling Its Majority Stake in Kantar to Bain Capital
Mark Read spoke on the sales of its majority stake to the private equity company. He talked about how great the Kantar business is and how the company looked forward to working with the private equity company to unleash its full potential. Read talked about how WPP as a strategic partner and shareholder in Kantar will continue to benefit from its future growth. He also talked about how Kantar’s clients will continue to benefit from its services and capabilities.
Read then thanked Eric Salama, his team and everyone at Kantar for their tremendous contribution to WPP. He stated that their contribution will continue as they develop the business together. He also explained that the transaction will create value for WPP shareholders and further simplifies the company. According to Read, it will give them a stronger balance sheet and a return of approximately 8% of their current market value to shareholders. He lastly mentioned that the company is making good progress with its transformation plans.