Kroger deal frees up DunnHumby

Tesco has removed the final barrier to the sell-off of DunnHumby by flogging off its stake in US retail giant Kroger, meaning the data firm will now be free to offer its services to the entire US market.
Last week, Tesco said a deal for DunnHumby was imminent but a major sticking point was its 50-50 marketing partnership with Kroger in DunnhumbyUSA.
As part of the move, Kroger will form a new unit that will continue to handle data and promotional marketing for the biggest supermarket retailer in the US and its suppliers, called 84.51°.
The new division will employ more than 500 of DunnhumbyUSA’s 700-plus US staff. The remainder of its American business will drop the “USA” and continue to work in offices in Cincinnati, Boston, Chicago, New York and Sacramento.
The deal simplifies the potential £2bn acquisition for the hatful of suitors, including the likes of WPP, Clayton, Dubilier & Rice – which is advised by former Tesco chief Sir Terry Leahy – Advent International, General Atlantic Partners, KKR, and Silver Lake Partners.
It means the data firm will be free to work with new retail and FMCG clients and to develop its existing platform of client relationships in the US and globally.
DunnHumby chief executive Simon Hay said: “We are excited to bring our insights and capabilities to more of the North American market. The wider US market is a fantastic opportunity for DunnHumby to help more retailers and brands undertake a similar journey using data-driven insights and media to delight their customers and earn their loyalty.”