Investment giant KKR & Co. Inc. announced on Wednesday that it has agreed to purchase a majority stake in FGS Global, a leading public relations firm, in an all-cash transaction valuing the company at $1.7 billion. The deal underscores KKR’s confidence in the growing management consulting service industry.
WPP to sell its majority stake in FGS Global : Details of the Transaction
KKR, through its entity Kite Bidco Inc., plans to acquire an additional 50% stake in FGS Global from U.K. advertising company WPP PLC for $775 million, or $707 million after tax. KKR had previously bought a 29% minority stake in FGS Global in April 2023, valuing the company at $1.4 billion at that time.
Philipp Freise, a partner and co-head of European private equity at KKR, expressed enthusiasm about the deal, stating, “We strongly believe in FGS’ strategy and leadership and have been pleased with our partnership since our minority investment in July 2023. In today’s increasingly complex stakeholder ecosystems, the value of FGS’ insight, advice, and execution is increasingly essential for organizations to navigate uncertainty and achieve their goals.”
Financial Aspects and Future Plans
The acquisition is being made primarily through KKR’s $8 billion European Fund VI. The transaction, anticipated to be finalized by the end of 2024, is subject to regulatory approvals and other conditions. Specific regulators involved were not disclosed.
