S&P Global announced that it has entered into an agreement to sell its Engineering Solutions business to investment funds managed by KKR, a global investment firm and a longstanding customer of S&P Global, for $975 million in cash, subject to customary purchase price adjustments.
S&P Global currently anticipates the divestiture to result in after-tax proceeds of approximately $750 million, which proceeds are expected to be used to fund share repurchases. The agreement follows S&P Global’s announced intent in November 2022 to divest the business, the statement said.
“Today’s announcement marks the next exciting step towards executing our strategy of powering global markets,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. “The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core businesses. Engineering Solutions is a strong business, and we believe it will continue to thrive under KKR’s direction.”
“We see significant opportunities for Engineering Solutions to accelerate growth, expand its footprint and continue to innovate as an independent company,” said Webster Chua, Partner at KKR. “Engineering Solutions is trusted by engineers and standards organizations around the world and we look forward to deepening these relationships by making long-term investments in enhanced product coverage, improved workflow solutions and expanded distribution capabilities.”
KKR is making the investment through its North America Fund XIII.
Engineering Solutions became part of S&P Global following the company’s merger with IHS Markit early last year. The transaction, which is subject to receipt of required regulatory approvals and satisfying other customary closing conditions, is expected to close by the end of the second quarter of 2023.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.