WPP sells FGS Global to private equity firm KKR for $US775 million

By AdNews | 7 August 2024
 
Credit: Markus Spiske via Unsplash

WPP is selling its majority stake in strategic communications and advisory firm FGS Global to Kite Bidco, an entity controlled by private equity group Kohlberg Kravis Roberts (KKR) .

KKR, which first made a minority investment in FGS Global in July 2023, will pay $US775 million.

WPP says the deal better positions the global advertising company to focus on and invest in its world-class creative, media and corporate and consumer public relations businesses.

The cash will be used to reduce WPP’s debt.

“The sale of FGS represents an excellent outcome for WPP," said WPP CEO Mark Read.

"Together with the management of FGS we have built a world-leading strategic communications and advisory group, creating considerable value for all stakeholders.

"We have achieved an attractive price, enabling WPP to accelerate the crystallisation of the significant value created.

"This also provides WPP with greater financial and management flexibility as we continue to grow our core business including Burson and Ogilvy Public Relations which give our clients access to world-class public relations services.”

 

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