SYDNEY, Today: WPP AUNZ has entered into an agreement to sell 100% of its interests in the Kantar businesses in Australia and New Zealand (Kantar).
Sydney-based WPP AUNZ chairman Robert Mactier said (in a statement supplied to media this morning via the ASX): “The proposed sale of Kantar simplifies WPP AUNZ and is an attractive strategic and financial outcome for the company and its shareholders.”
The transaction values Kantar at A$168 million, equivalent to a multiple of 8.2x Kantar’s 2019 budgeted EBITDA.
Proceeds to WPP AUNZ on completion, after transaction costs, and provision for restructure liabilities to the value of A$8.4million, are expected to be c. A$150 million, payable in cash.
WPP directors say participating in the global transaction is an attractive strategic outcome.”
WPP AUNZ’s global brand service fee payable to WPP plc will reduce to 2.31% of global brand net sales p.a. – a 2018 pro-forma EBITDA benefit of $5.2 million
Completion of the transaction is expected to be in early calendar year 2020 and is subject to approval by non-WPP plc associated shareholders of WPP AUNZ and completion of the WPP plc global deal.
Mactier said: “Subsequent to the announcement by WPP plc that it has entered into an agreement to sell a 60% stake in the global Kantar business, a committee of independent WPP AUNZ board directors has determined that to participate in the global transaction is an attractive strategic and financial outcome for the company and our shareholders.
“As a result, WPP AUNZ has now agreed to sell 100% of its interests in the Kantar businesses in Australia and New Zealand as part of the global transaction.”
Kantar includes the following major companies, which comprise WPP AUNZ’s Data & Insights luster: Kantar Insights, Kantar Consulting, Colmar Brunton, Lightspeed, The Online Research Unit
Kantar is an industry-leading data, research, consulting and analytics business which offers insights into the views of customers and consumers in over 100 countries. WPP launched Kantar in 1992 by consolidating its existing market research businesses, and has added significantly to its reach and capabilities since then through a combination of acquisitions, partnerships and internal product development.
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