WPP shortlists final bidders for Kantar
Reuters reports that WPP has shortlisted a series of U.S. buyout funds to submit binding bids for a majority stake in its data analytics unit Kantar as it wants to finalise the sale in late June. Four private equity firms are in the running and it is expected to be finalised towards the end of June.
Kantar generates about 15% of WPP’s overall sales and provides brand and marketing communications research for some of the world’s largest advertisers. The business is valued at about 3.5 billion pounds, representing a multiple of seven to nine times its earnings before interest, tax, depreciation and amortization (EBITDA) of $550 million, two of the sources said.
Some investors have expressed concern over Kantar’s business model which is being challenged by disruptive digital technologies. The unit’s underlying sales slipped 2 percent last year to 2.6 billion pounds with operating profits down 14 percent to 301 million.
Kantar’s media monitoring businesses are market leaders in UK, France, Spain and Germany.
