WPP and Providence Equity Partners have bought Chime Communications for £374 million.
The Sir Martin Sorrell-owned group had already held an 18% share in Chime, which owns creative agency VCCP, while reports state that Providence, a US private equity firm, was attracted to Chime for its sports marketing credentials.
Under the terms of the offer, Chime shareholders (other than WPP) will be entitled to receive 365 pence in cash for each Chime Share held. In addition, Chime Shareholders who are on the Chime shareholder register on 11 September 2015 will be entitled to receive an interim dividend for the current year of 2.53 pence per Chime Share.
Chime, which last year recorded revenues of £300 million, was founded in 1989 by Lord Bell, Margaret Thatcher’s media adviser. Its sports marketing division is chaired by Lord Coe, the former athlete who led London’s successful bid for the 2012 Olympic Games.
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Chime chairman, Lord Davies of Abersoch, said that while Chime has achieved “great success to date” in building a leading position in the global sports marketing and communications industry, “significant new capital” is required to help the company grow.
“Providence and WPP offer Chime both the capital and the industry expertise to fast-track our ambitions to build a full scale, global sports marketing and communications business,” he said.
“Taking this into account, Chime’s independent Directors unanimously recommend that shareholders vote in favour of the resolutions at the General Meeting and in favour of the Scheme at the Court meeting.”
