JD Power has been sold to China’s XIO Group
McGraw-Hill to sell JD Power to China’s XIO Group
McGraw-Hill Financial said it would sell car rating unit J.D. Power and Associates to China-based buyout firm XIO Group for $1.1 billion.
Reuters reported this month that XIO Group was seeking to buy J.D. Power, which provides data on performance improvement and customer satisfaction, mainly for the auto and advertising industries.
McGraw-Hill Financial, the parent of Standard & Poor’s ratings agency, said in October it was exploring a sale of J.D. Power, which had annual revenue of about $350 million.
The deal is expected to close in the third quarter. Morgan Stanley advises McGraw Hill on the deal.
The McGraw-Hill unit was started by J.D. “Dave” Power and wife Julie in 1968 from their home in Calabasas, California, and landed Toyota Motor as their first client.
NOTE: the deal is already done.