New York, January 17, 2023 /PRNewswire/ — S&P Global (NYSE: SPGI ) announced today that it has entered into an agreement to sell its Engineered Solutions business to an investment fund managed by KKR, a leading global investment firm and part of S&P Global Long-term customer. $975 million Payment in cash, subject to customary purchase price adjustments.
S&P Global currently expects divestitures to generate approximately $750 million, the proceeds are expected to be used to fund share repurchases.The agreement follows S&P Global’s announced intent to November 2022 Divested business.
“Today’s announcement marks our next exciting step toward executing our strategy to power markets around the world,” said Douglas Peterson, President and Chief Executive Officer of Standard & Poor’s Worldwide. “The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core business. Engineering Solutions is a strong business and we are confident that it will continue to thrive under KKR’s guidance.”
Engineering Solutions provides data, technology and insights that enable more than 6,000 global clients and 650,000 users to optimize workflows and end-user experiences. Its products enable engineers, builders and architects across many industries to access the data and insights they need to deliver complex projects and new products.
“We see significant opportunity for Engineering Solutions to accelerate growth, expand its footprint and continue to innovate as a stand-alone company,” said Webster Tsai, Partner at KKR. “Engineering Solutions is trusted by engineers and standards organizations around the world, and we look forward to deepening these relationships through long-term investments in enhanced product coverage, improved workflow solutions and expanded distribution capabilities.”
KKR invests through its North American Fund XIII.
Engineering Solutions became part of S&P Global following its merger with IHS Markit early last year. The transaction, subject to necessary regulatory approvals and other customary closing conditions, is expected to close by the end of the second quarter of 2023.
About S&P Global
S&P Global (NYSE: SPGI ) provides essential intelligence. We empower governments, businesses and individuals with the right data, expertise and connected technology to make informed decisions. From helping our clients evaluate new investments to guiding them through ESG and energy transitions across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world.
We are sought after by many of the world’s leading organizations, providing credit ratings, benchmarking, analytics and workflow solutions for the global capital, commodities and automotive markets. With every service we provide, we are helping the world’s leading organizations plan for tomorrow today.
KKR is a leading global investment firm, providing alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, hiring world-class talent and supporting the growth of its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets, and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsorship funds and insurance subsidiaries. More information on KKR & Co. Corporation (NYSE: KKR), visit KKR on the web at www.kkr.com and on Twitter @KKR_Co.
Goldman Sachs LLC acted as financial advisor to S&P Global and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor. RBC Capital Markets acted as financial advisor to KKR and Simpson Thacher & Bartlett LLP served as legal advisor.
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This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about future business and operating results, the industry and markets in which S&P Global Inc. operates. (“Company”) operations and the beliefs and assumptions of Company management involve uncertainties that could materially affect the Company’s financial or operating results. Words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “seek”, “will”, “should”, “may”, “project”, “could”, “would” etc. , “target,” “estimate” or variations of these words and other similar expressions are intended to identify such forward-looking statements, which are generally not historical in nature, although not all forward-looking statements contain such identifying words. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in such forward-looking statements. There can be no assurance that our expectations will be met, and as a result, actual results and results may differ materially from those expressed or projected in such forward-looking statements. For example, these forward-looking statements may be affected by factors including, but not limited to, risks associated with (i) the satisfaction of conditions precedent to the completion of the proposed divestiture of the Global Engineered Solutions business, including the ability to obtain regulatory approval in full or in a timely manner approved on anticipated terms; (ii) economic, financial, political and regulatory conditions, United States and elsewhere, and those resulting in uncertainty and volatility, natural and man-made disasters, civil unrest, epidemics (e.g., the coronavirus (COVID-19) epidemic (“COVID-19 epidemic”)), geopolitical uncertainties (iii) the Company’s response to hurricanes, floods, earthquakes, terrorist attacks, wars, epidemics, security breaches, cyber attacks, power outages, telecommunications The ability to recover successfully from disasters or other business continuity issues caused by failures or other natural or man-made events, including the ability to operate remotely during prolonged disruptions such as the COVID-19 pandemic; (iv) the impact of public health crises such as the Epidemics (including the COVID-19 pandemic) and epidemics and any related corporate or government policies and actions to protect the health and safety of individuals, or to maintain the operations of the national or global economy and markets, including any quarantine, “shelter in place,” “stay at home,” layoffs, social distancing, closures, or similar actions and policies; (v) the outcome of any potential litigation, governmental and regulatory proceedings, investigations and inquiries; ( vi) changes in debt and equity markets, including credit quality and spreads; (vii) changes in financial markets, capital, credit and commodity markets, and interest rates; (viii) the possibility that the cost of completing the transaction may be higher than expected, including due to unanticipated factors or events; (ix) the ability of the parties to meet expectations regarding the accounting and tax treatment of the proposed transaction; (x) those additional risks and factors discussed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”) from time to time, Includes those reports on Form 10-K and subsequent quarterly reports on Form 10-Q discussed under the heading “Risk Factors” in their respective most recently filed annual reports. While the factors listed here are considered representative, this list should not be considered a complete statement of all potential risks and uncertainties. Factors not listed may present material additional obstacles to the realization of forward-looking statements. Consequences of results that differ materially from those anticipated in the forward-looking statements could include business interruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the company Combined effects of financial condition, operating performance, credit rating or liquidity. The company disclaims any obligation to update any forward-looking statement contained in this communication or otherwise update any of the factors described above, except to the extent required by applicable law or regulation.
Source S&P Global