Kantar owners Bain, WPP weigh break up and sale of group: FT

WPP and Bain Capital are reportedly exploring the sale of Kantar, their jointly owned market research firm. The move comes as WPP looks to strengthen its financial position following a drop in its share price and challenges in the advertising market, as reported by Financial Times.

WPP sold a 60% stake in Kantar to Bain Capital in 2019 for around $4 billion, holding onto the remaining 40% to keep strategic ties. The sale was part of CEO Mark Read’s plan to cut debt and simplify operations after years of rapid expansion. Now, with challenges in the advertising market and pressure on its stock, WPP is considering selling its remaining stake, potentially valuing Kantar at up to $8 billion, including debt.

WPP is working with advisers to assess options for its 40% stake in Kantar, including a potential sale or a deal that could see Bain Capital take full ownership. The decision comes after earlier plans for an IPO were reconsidered due to challenging market conditions.

Now, WPP and Bain Capital are reportedly exploring the option of splitting Kantar into separate divisions, including its fast-growing Chicago-based unit, Numerator, to maximise returns through individual sales. Analysts estimate that WPP’s share of the proceeds could be between $1.2 billion and $1.6 billion, depending on the final deal structure and valuation. Since acquiring a majority stake, Bain has focused on transforming Kantar into a more tech-driven business, with acquisitions like Numerator enhancing its consumer insights offerings.