HIG Capital acquires Kantar Media for $1bn, strengthening WPP’s Kantar Group

HIG Capital acquired Kantar Media, the media research arm of Kantar Group, in a $1bn transaction.

The sale is expected to boost the value of Kantar Group, which is 40% owned by WPP, as the advertising giant faces headwinds from a slowdown in global ad spending.

Kantar Media operates in more than 60 markets and employs over 4,500 people globally. The company is renowned for its television ratings services and other media research capabilities. Patrick Béhar, CEO of Kantar Media, stated that the deal would provide resources to accelerate growth and enhance its market position.

Kantar Group, established in 1992 as WPP’s market research division, has evolved into a leader in consumer behaviour analytics and brand consultancy. In 2019, WPP sold a 60% stake in Kantar Group to Bain Capital, valuing the business at £3.2bn. The £2.5bn in proceeds helped WPP reduce debt and fund share buybacks.

Under CEO Mark Read, WPP has restructured and streamlined its operations, including the sale of a 50% stake in FGS Global to KKR for £604m. The group recently returned to acquisitions, including its purchase of New Commercial Arts. However, challenges remain, with economic uncertainty, slowing ad sales, and the impact of artificial intelligence on creative industries weighing on its outlook.

The Kantar Media sale reflects WPP’s ongoing efforts to adapt to market challenges and unlock value in its portfolio. The deal marks another significant milestone in private equity’s involvement in the media and advertising sectors.

Source: The Times

Can’t stop reading? Read more