Summary
S&P Global Inc. (SPGI) announced the completion of a significant divestiture on May 2, 2023. The company's indirect wholly-owned subsidiary, IHS Markit Ltd., successfully sold its global engineering solutions business to Allium Buyer LLC, an entity controlled by funds affiliated with Kohlberg Kravis Roberts & Co. L.P. The transaction, valued at $975 million in cash subject to customary adjustments, marks a strategic move for S&P Global. This divestiture is part of a larger strategic realignment, allowing S&P Global to focus on its core data, analytics, and credit ratings businesses. Investors should monitor the impact of this sale on the company's future financial performance, particularly in relation to its stated strategic priorities and capital allocation plans. The proceeds from this sale are expected to provide S&P Global with increased financial flexibility.
Key Highlights
- 1Completion of sale of global engineering solutions business by IHS Markit Ltd. (indirect subsidiary of SPGI) on May 2, 2023.
- 2Sale was to Allium Buyer LLC, controlled by funds affiliated with Kohlberg Kravis Roberts & Co. L.P.
- 3Transaction value of $975,000,000 in cash, subject to customary adjustments.
- 4This divestiture aligns with S&P Global's strategy to focus on its core businesses.
- 5The company issued a press release on May 2, 2023, to announce the transaction's completion.
- 6The sale agreement was originally dated January 14, 2023.