Costa Mesa-based Experian Information Solutions Inc. is set to break from its British parent, but how and when isn’t entirely clear.
London-based GUS PLC on Wednesday said it plans to “separate” Experian after first spinning off a clothing and retail chain. The company didn’t offer more details on its plans for Experian.
“The right future for the business is to separate Experian,” said David Tyler, group finance director with GUS during an analysts’ call. “When we’ve made the decision about timing and about method, we’ll be back to the market to give that information.”
GUS, which runs Argos and Homebase stores in Britain, said this year it plans to spin off Burberry Ltd., a clothes maker and retailer. GUS holds a 66% stake in Burberry.
Investors had hoped GUS would spin off Experian first. They drove GUS shares down 3.1% Wednesday on the London Stock Exchange.
Investors see Experian, best known for its credit reporting business, as a star at GUS with consistent double-digit growth.
For the 12 months ended March 31, Experian’s sales on continuing operations were up 18%. Profits climbed 16%. GUS’ sales were up 3%. Profits were off by 11%.
Experian counts $2 billion in yearly revenue.
The company could fetch a market value of $3.8 billion to $5.6 billion if spun off, analysts say. It would make for one of the bigger U.S. public offerings in recent years, they say.
Experian has looked to move beyond credit reports. The company also offers marketing and fraud prevention services and automotive data.
It’s made four major acquisitions since 2002, including the pending buy of Santa Monica Web site operator LowerMyBills Inc.
