Omar Oakes
Jul 1, 2019

WPP confirms sale of stake in VCCP and CSM owner Chime

Sale comes four years after WPP and Providence Equity bought agency group for US$473 million.

WPP confirms sale of stake in VCCP and CSM owner Chime

WPP is selling its minority shareholding in Chime, the parent company of VCCP and CSM Sport & Entertainment.

The holding group announced this morning that it will sell its 24.85% stake to US private-equity company Providence Equity for US$68.8 million.

WPP would also receive "potential additional amounts based on the future value of Chime", the company said in a statement to the London Stock Exchange.

"The disposal is in line with WPP’s new strategy as set out in December 2018, a key element of which is to focus on its main areas of business and simplify its operations through the disposal of non-core assets," the statement added.

Lindsay Pattison, WPP’s chief transformation officer, represents the company as a director on the board of Chime.

The sale comes four years after WPP and Providence bought Chime for US$473 million. Chime was founded by Lord Bell, Margaret Thatcher’s former media advisor. WPP had already owned an 18% stake in Chime before the deal.

Chime, which acquired VCCP in 2005, increased its revenue by 14% in 2017 to $354 million, according to its most recent financial disclosure, with a pre-tax profit of US$27.3 million (down 1.4% year on year).

 

Source:
Campaign UK

Related Articles

Just Published

1 hour ago

Women to Watch 2022: Elayne Gan, Dow Jones

Recording incredible growth in the pandemic is no mean feat, and Gan boasts a massive 60% revenue growth since taking over the head of sales role in 2019.

11 hours ago

Heritage brands and the power of deliberate creativity

Brands need the courage to step away from the familiar into that fertile territory for innovation.

11 hours ago

Teads and Impact+ partner to evaluate greenhouse ...

Impact+ is a measurement provider that can estimate the carbon footprint of digital communications and suggest how to set up an environmental KPI.

11 hours ago

Haymarket to launch podcasting title PodPod

The editorial brand will cover craft and business of podcasting.