Bain & WPP plan breakup and sale: FT

New Delhi: WPP and Bain Capital are reportedly contemplating the sale of their jointly owned market research firm, Kantar. 

With the sale, WPP seeks to bolster its financial position amid a faltering share price and a challenging advertising market.

In 2019, WPP sold a 60% stake in Kantar to Bain Capital for approximately $4 billion, retaining a 40% share to maintain strategic ties. 

The original deal was part of WPP’s broader effort under CEO Mark Read to reduce debt and streamline operations following years of aggressive expansion. 

Now, with the advertising industry facing headwinds and WPP’s stock under pressure, the company is exploring options to divest its remaining stake, potentially valuing Kantar at up to $8 billion, including debt.

As per the news reports, WPP is working with advisers to evaluate multiple pathways, including an outright sale of its 40% stake or a transaction with Bain Capital, which could see the private equity firm take full ownership. 

The renewed focus on Kantar’s future follows a report from the Financial Times on March 10, 2025, suggesting that Bain and WPP are shifting away from earlier plans for an initial public offering (IPO) due to unfavorable market conditions for new listings. 

Instead, the partners are considering breaking up Kantar into its constituent divisions—such as its fast-growing Numerator unit in Chicago—for separate sales, potentially maximising returns.

A sale of Kantar could provide a significant cash infusion, with analysts estimating that WPP’s portion of the proceeds could range between $1.2 billion and $1.6 billion, depending on the final valuation and structure of the deal.

Since acquiring its majority stake, Bain has overseen Kantar’s transformation into a more technology-driven enterprise, integrating acquisitions like Numerator to bolster its consumer insights capabilities.