Lower than expected earnings and difficulties financing a deal are pushing down the potential price of Tesco customer data business dunnhumby to around £700m, according to reports. Earlier rumours had talked the price up to around £2bn, and a large number of potential bidders have been involved.
In June, it was reported that bidders were suggesting prices around the £1bn mark, following the announcement five weeks previously that staff from Cincinatti-based dunnhumbyUSA were moving to a new agency, to be known as 84.51° and wholly owned by grocery giant The Kroger Co, with a corresponding tumble in dunnhumby’s pre-tax profits. Recent disclosures about the forthcoming renegotiation of the division’s crucial relationship with Tesco itself have further muddied the water, and according to the FT, bidders have been discouraged by ‘lower than expected earnings and difficulties financing a deal’.
According to the Financial Times (www.ft.com ), ‘two people familiar with the auction’ said some bidders were now looking at a price of £700m or less. Tesco is looking to sell the loyalty data pioneer, along with its supermarket business in Korea, to ease a debt crisis uncovered last year, and was said to have received a first bid as long ago as October 2014. The bidding process, which three weeks ago was still reported to include interested parties WPP Group / General Atlantic, Google / Permira, Apax Partners and CVC Capital, should be drawing to a close in September.
Web site: www.dunnhumby.com .
Bron: Daily Research News Online no. 21308 – Rumours Suggest dunnhumby Price Down Again
