Ad Giant WPP Sells Kantar Stake to Bain
12 Julho 2019 - 10:37AM
Dow Jones News
By Nick Kostov
WPP PLC has agreed to sell a 60% stake in its Kantar
market-research unit to Bain Capital Private Equity, raising about
$3.1 billion in the advertising giant's biggest move yet to refocus
its portfolio.
The London-based company, which will retain 40% of Kantar, said
Friday it plans to return $1.2 billion to shareholders and use the
rest of the sale proceeds to reduce debt.
Since taking the helm of WPP in September last year, new Chief
Executive Mark Read has moved to pare down the sprawling ad empire
to satisfy marketers' demands for more nimble, tech- and data-savvy
agencies.
The overhaul comes as WPP and its rivals wrestle with a number
of challenges, from new competitors such as consulting firms
encroaching on their turf, to the growing power of Facebook Inc.
and Alphabet Inc.'s Google.
The 52-year-old Briton, who became CEO after the abrupt
departure of longtime leader Martin Sorrell, quickly combined
creative agency Young & Rubicam and digital-ad firm VML in a
bid to bolster lackluster performance. Soon after, he merged
storied creative agency J. Walter Thompson and digital specialist
Wunderman.
In recent weeks, WPP has also sold its majority stake in U.K.
postproduction company The Farm as well as its stake in
communications and sports-marketing group Chime Group Holdings.
Still, the sale of a majority stake in Kantar marks Mr. Read's
biggest move since taking the helm. Kantar offers research, data,
social-media moderating and other services aimed at helping
companies tailor their brands, advertising campaigns and products
to reach their target market. It has weighed on WPP's results for a
number of years, as clients have turned to less labor-intensive
digital sources for customer insights.
"Data is critical to WPP's clients and critical to WPP, but
there's a growing number of sources of data," Mr. Read told
reporters, adding that the company should focus on "data-driven
marketing rather than data ownership."
Bain emerged as the winning bidder for Kantar at the start of
the month, beating out competition from a group of rival buyout
firms, when WPP announced the pair had entered exclusive talks.
Including debt, the transaction values Kantar at about $4
billion.
The U.S. private-equity group now faces the task of spearheading
a turnaround of Kantar away from the glare of public markets. WPP
stands to reap some benefit if Bain succeeds by retaining a
minority stake in Kantar.
Luca Bassi, a managing director at Bain, said there were
opportunities to invest in Kantar's technology and expand its
capabilities. "Market research remains the cornerstone of business
decision making," Mr. Bassi said. "All over the world all companies
and industry will require more data, and more solutions to analyze
and interpret that data."
WPP expects the deal to be largely complete by early 2020,
although it remains subject to approval from WPP's shareholders and
regulators, as well as the completion of a Kantar
reorganization.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
July 12, 2019 09:22 ET (13:22 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Wpp (LSE:WPP)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Wpp (LSE:WPP)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024