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  • 📈 Ipsos Eyes £1bn Ratings Power Grab

📈 Ipsos Eyes £1bn Ratings Power Grab

Supreme Pours £10m into Tea Revival

December 02, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Ipsos Eyes £1bn Ratings Power Grab

  • Supreme Pours £10m into Tea Revival

  • Direct Line’s Comeback Plan Stirs Interest!

The summary: The £1bn scramble for Kantar Media, the UK's TV ratings guru, pits Ipsos against private equity bigwigs in a high-stakes bid to dominate the media data game.

The details:

  • Ipsos, the global polling powerhouse, is eyeing a potential £1bn deal to acquire Kantar Media, throwing its hat into a competitive ring against private equity titans.

  • Kantar Media, which steers the UK's TV ratings system (Barb) and employs 4,000 media wizards, is a prized asset co-owned by WPP and Bain Capital.

  • The chatter aligns with Ipsos’ strategy to bolster its market grip, though they've kept mum about whether any deal will actually materialise.

  • With Bain reportedly leading the sale and a queue of suitors like Triton Partners and Cinven, this could signal a blockbuster shake-up for Kantar's parent group.

Why it matters: A £1bn tussle over Kantar Media isn’t just a corporate shuffle—it’s a power play for dominance in the lucrative world of audience data. With Kantar anchoring the UK’s TV ratings and holding sway over media analytics, whoever snags it will wield serious influence over how eyeballs—and ad pounds—are counted. For Ipsos, it’s a chance to beef up its clout, but with private equity sharks circling, this could turn into quite the spectacle.

The summary: In a bold business twist, Supreme is swapping vape clouds for tea bags, rescuing the iconic Typhoo brand with plans to brew profits through savvy outsourcing and a splash of nostalgia.

The details:

  • Supreme’s Brew-tastic Bargain: London-listed Supreme snapped up Typhoo Tea, the 121-year-old brand, for £10.2m after its collapse into administration. The deal includes £7.5m for stock and trade debts.

  • Steeping in Trouble: Typhoo had been swirling in hot water with mounting debts, dwindling sales, a factory break-in, and a pre-tax loss of £4.6m last year, despite £20m in revenue.

  • Tea Leaves to Vape Clouds: Known for vapes, Supreme is brewing up diversification. Following its purchase of Clearly Drinks, it now aims to give Typhoo a fresh start with an outsourced, capital-light manufacturing model.

  • Bold Blend of Optimism: CEO Sandy Chadha hailed the acquisition as a "significant step," vowing to steep Typhoo in Supreme’s market reach and branding expertise for a proper cuppa comeback.

Why it matters: Supreme’s pivot from puffing vapes to brewing tea shows the agility businesses need in a rapidly shifting market, especially with looming government crackdowns on disposables. Rescuing Typhoo, a once-beloved brand, is a daring bet that nostalgia and savvy outsourcing can turn a profit from tepid sales. It’s a reminder that in British business, a good diversification strategy is as essential as a proper brew—adapt or risk going cold.

The summary: Direct Line is fending off Aviva’s £3.3bn bid while plotting a comeback, with rival suitors in the wings and regulators keeping an eye on the market shake-up—talk about an insurance drama!

The details:

  • David vs. Goliath: Direct Line’s Adam Winslow is asking shareholders for patience to complete a turnaround, resisting Aviva’s £3.3bn "opportunistic" takeover bid, while Aviva woos investors with promises of grandeur.

  • Aviva's Tug-of-War: The insurance behemoth, led by Dame Amanda Blanc, faces shareholder scepticism and whispers of counterbids, as Direct Line’s stock price leaps amidst speculation.

  • Crisis and Comebacks: Winslow, armed with ex-Aviva allies and a £100m cost-cutting plan, insists Direct Line can shine solo—despite job cuts and past suitors like Ageas sniffing around.

  • Regulators Watch: Analysts eye Aviva’s potential bid hikes to 300p per share, though competition watchdogs could step in, wary of market dominance in motor and home insurance.

Why it matters: The UK insurance market is seeing a real game of musical chairs, with Aviva trying to snatch up Direct Line while it insists it's got the chops to thrive alone. With shares soaring and rival suitors like Ageas lurking, it's a high-stakes tango of bids, counteroffers, and a few job cuts thrown in for good measure. Meanwhile, regulators might be eyeing the situation, wondering if customers will end up paying the price for this corporate merry-go-round.