The Offer values the entire issued and to be issued share capital of Trucost at approximately £14.213 million. The Trucost Directors have unanimously agreed to recommend that Trucost Shareholders accept the Offer.
Trucost is a leading provider of environmental data to investors, companies and governments. Trucost’s data and insight enables its clients to identify natural capital dependency across companies, products, supply chains and investments; manage risk from volatile commodity prices and increasing environmental costs; and ultimately build more sustainable business models and brands. Trucost is an international business with 73 staff, headquarters in the UK and offices in USA, France, India and China.
Trucost has experienced significant revenue growth in recent years as governments and capital markets have increasingly understood the need for stronger climate change and environmental policies. In the four months to date of the current financial year, the Trucost Group has achieved unaudited sales of approximately 29.3 percent ahead of the comparable period in the last financial year, reflecting strong demand for Trucost’s products. In early 2016, the Trucost Directors reviewed the company’s significant progress and defined several ways of continuing to scale the business rapidly. The Directors agreed that Trucost would benefit from the access to markets that a larger global organization could provide. Therefore, on 11 April 2016, the Trucost Directors announced that it would commence a formal sale process to investigate the option of selling the business to a strategic acquirer.
Trucost was well known to the board and management of S&P DJI, S&P GI’s indirect parent, through a formal collaboration agreement which has been in place since 2009. S&P DJI, together with its predecessor, has been a client of Trucost for over seven years, and during that time a strong and innovative partnership has evolved which has seen the development of some of the world’s first low carbon indices.
The acquisition of Trucost will build on S&P DJI’s current portfolio of environmental, social and governance (ESG) solutions, with a combined entity being very well placed to satisfy growing market demand. This is strengthened by the complementary nature of the two businesses and a long standing commercial relationship between the two parties.
S&P DJI is one of the world’s largest index providers, with customers in more than 70 countries, offices in 21 locations and over 400 dedicated professionals. Within the ESG sector, S&P DJI has an established team of ESG specialists and calculates over 50 headline daily indices with more than $5bn in assets under management based on these indices. Given S&P DJI’s existing capabilities, S&P DJI believes the acquisition of Trucost will enable S&P DJI to expand and accelerate delivery of its ESG solutions.
Trucost’s Directors are also excited at the prospect of offering new or enhanced services to clients of other S&P Global businesses, which include S&P Global Ratings, S&P Global Market Intelligence, and S&P Global Platts in addition to S&P DJI. As well as its services to investors and other financial institutions, Trucost has built an impressive suite of tools that companies use to evaluate their impact and dependency on natural capital across the value chain. The growth in the green bond market and the increasing interest in issuers’ strategy and performance with respect to global climate policy and energy transition means that companies will increasingly seek to measure and communicate their sustainability ambitions in ways that investors and capital markets can recognize and act on. Trucost’s tools are specifically designed for this purpose.
Commenting on the Offer, Dr Richard Mattison, Chief Executive Officer of Trucost, said: “Trucost has been a pioneer in providing investment grade carbon and environmental data to investors, companies and governments for over 15 years. The Board is delighted with the offer from S&P Global Indices UK Limited. Never has it been more important to integrate environmental, social and governance (ESG) data into investment decision making. Trucost’s expertise and S&P’s global presence will provide a market leading platform to scale the delivery of meaningful ESG data and analytical tools to capital markets and companies across the world.”
Commenting on the Offer, Alexander Matturri, Chief Executive Officer of S&P DJI, said: “S&P Dow Jones Indices LLC, the indirect owner of S&P Global Indices UK Limited, is pleased to have agreed the terms for the Offer. This potential transaction would enable S&P DJI, together with Trucost, to expand and accelerate the delivery of Environmental, Sustainable and Governance solutions to the marketplace. Through investments in the business and leveraging existing resources, we anticipate great value in our ability to satisfy market demand and growth and are very excited by the strategic opportunities presented by this transaction.”
James Richens, +44 (0)20 7160 9800, firstname.lastname@example.org