WPP and Providence Equity Partners to buy VCCP parent company Chime for $800m
Communications group Chime, the owner of creative agency VCCP, has agreed to a buyout offer of $800m from Providence Equity Partners and WPP.
The group accepted a cash offer for its entire issued share capital at $7.79 a share, as well as an interim dividend for the current year of 54 cents per share.
Chime chairman Lord Davies of Abersoch said in a statement: “Chime has achieved great success to date in building a leading position in the global sports marketing and communications industry, which is reflected in the attractive premium being offered to shareholders.
“However, to fulfil Chime’s considerable growth potential, significant new capital is required. 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.
“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.”
WPP is the world’s biggest marketing holding group, which in Australia owns agencies including MEC, Mediacom, JWT, George Patterson Y&R and Mindshare, and already holds an approximate 18 per cent share in Chime Communications.
Chime Communications reported pre-tax profit of $64.2m for the 2014 year, with operating income of $429.2m.
Locally VCCP clients include comparethemarket.com.au, Fitness First and ING Bank. Earlier this year it announced Mark Harricks as its first executive creative director in Australia.
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