UBM news releases
UBM plc announces proposed sale of Data Services businesses
Feb 5, 2013
Concluding the strategic review initiated in July 2012, UBM plc today announces that it has received a binding offer from Electra Partners LLP to purchase a portfolio of UBM’s Data Services businesses (“Delta”) for consideration of £160m including a £40m vendor loan note. The offer is subject to consultation with the relevant works council in France and certain regulatory and other approvals(see Note 1).
Delta represents the bulk of UBM’s Data Services segment and includes its Health, Technology and IP, Trade & Transport, and Paper business units. In 2011, these businesses generated revenue of £190.0m and adjusted operating profit of £27.7m. In 2012, these businesses generated revenue of £179.3m and adjusted operating profit of £27.4m (see Notes 2 & 3). As at 30 June 2012 the businesses had gross assets of £295.5m.
Upon completion, the cash consideration of approximately £100m (net of working capital adjustments) will be used to repay bank debt. The vendor loan note, which will be held at amortised cost, will carry a 6% PIK coupon and has a final maturity of six years. Credit Suisse acted as sole financial adviser to UBM on the transaction.
For UBM as a whole, 2012 fully diluted adjusted EPS is expected to be approximately 58 pence. Events earnings have been in line with our expectations despite slightly lower revenue growth than anticipated. PR Newswire has performed in line with our guidance. Earnings in Data Services have fallen short of guidance but are expected to be offset by lower than anticipated corporate costs and tax charge.
David Levin, CEO, UBM plc said:
“This transaction is a significant strategic step forward for UBM: by divesting Delta we simplify UBM’s business, improve the quality of our earnings, enhance our underlying growth rates and remove the challenges inherent in the continued transition to digital data delivery. We can now look forward to focusing on further developing UBM as a fast-growing and increasingly profitable events-led, marketing services and communications business.”
UBM plc will issue its Full Year results on 1 March 2013 and host an Investor Presentation, at the London Stock Exchange, at 11am that morning.
1. The Delta businesses will be classified as discontinued in UBM’s 2012 consolidated results. Given the transaction structure and the likelihood of completion, their results will not be consolidated in UBM’s financial statements from 1 January 2013.
2. For 2012, the revenues of the Delta businesses being sold are expected to be approximately £179m, of which c.£138m is classified within UBM’s Data Services segment, c.£28m within Marketing Services and c.£13m within Events. During 2012 these businesses generated approximately £27.4m of adjusted operating profit (see Note 3). UBM has retained a number of data services products, including Barbour ABI and some smaller technology products, which are closely related to retained businesses and were not subject to our strategic review. These retained businesses generated approximately £24m of revenue in 2012.
3. All 2012 financial figures remain subject to audit.