WPP today announces that it has completed the transaction to sell 60% of Kantar, its global data, research, consulting and analytics business, to Bain Capital Private Equity, with respect to approximately 90% of the Kantar business, and that the proportionate transaction proceeds have been received.
Following final completion in respect of the remaining Kantar business in the first half of 2020, total aggregate net proceeds after transaction costs, tax and WPP’s continuing investment in 40% of the equity of Kantar are expected to be approximately $3.1bn (approximately £2.4bn1).
The Kantar transaction was originally announced on 12 July 2019 and further details were included in a circular sent to WPP’s shareholders on 7 October 2019. As previously set out, WPP intends to retain approximately 60% of the net proceeds (approximately $1.9bn or £1.4bn) to reduce debt to the low end of the target leverage range of 1.5 – 1.75x average net debt/EBITDA for 2020, and to return approximately 40% of the net proceeds (approximately $1.2bn or £950m) to shareholders. WPP today announces that the return to shareholders will be executed via a share repurchase programme, which we expect to commence shortly, with an initial tranche of approximately £250m, of the total £950m, planned to be completed by March 2020.