5 February 2013
UBM plc announces proposed sale of Data Services businesses
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
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(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 1st 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(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.
Peter Bancroft Director of Communications
Direct telephone +44 20 7921 5961
Chris Barrie Citigate Dewe Rogerson
Direct telephone +44 20 7282 2943
Mobile +44 796 872 72 89
Kate Postans Head of Investor Relations
Direct telephone +44 20 7921 5023
Notes to Editors
About UBM plc
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the world's buyers and sellers together at events, online, in print and provide
them with the information they need to do business successfully. Our 6,500
staff in more than 30 countries are organised into specialist teams which serve
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markets to work effectively and efficiently.
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