United Business Media (UBM) has announced the sale of its market research arm, NOP World, to German company GfK Aktiengesellschaft for £383 million in cash.
Earlier this year, UBM announced a review of strategic options for NOP World and a commitment that “if sold, the Board intends that UBM should return a substantial part of the proceeds of the sale to shareholders”.
A number of third parties expressed their interest in acquiring the subsidiary, including WPP, Aegis and Taylor Nelson Sofres (see ITV Revenue Forecasts From Lehman Brothers).
UBM intends, conditional on completion of the sale of NOP World, to return £300 million of the proceeds of the disposal to UBM shareholders. This amount represents some 17% of UBM’s current market value.
Commenting on the deal, David Levin, chief executive officer of UBM said: “I am delighted with the achievement of this excellent result, both for UBM shareholders, enabling us to make a substantial capital return, and for NOP employers, who will have significant opportunities as part of a larger market research group. Thus transaction creates a more focussed UBM which can continue to develop its global publishing interests.”
NOP World is a leading provider of both syndicated and custom primary research and consulting support services. During the year to 31 December 2004, NOP World generated £222.9 million of turnover, compared to £203.9 million in 2003, last year NOP reported net operating profits of £80.2 million.
GfK Aktiengesellschaft’s acquisition of NOP will expand the market research company’s operations in the UK and US and further strengthen its business in important sectors like media, healthcare and automotive, making GfK one of the largest market research companies in the world.
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