WPP to sell FGS Global

FGS Global was formed from the merger of Finsbury, The Glover Park Group and Hering Schuppener in 2021. The company later acquired Sard Verbinnen. Its services include corporate PR, strategy, insight and measurement. 

WPP is selling its 50% stake to Kite Bidco, an entity controlled by investment funds managed or advised by Kohlberg Kravis Roberts (KKR), which first made a minority investment in FGS in July 2023.

The deal values FGS at c. £1.3bn. WPP said the total cash proceeds payable on completion (£604m) will be used to reduce its leverage.

The transaction is expected to close before the end of this year, subject to approvals and closing conditions. 

Mark Read, chief executive, WPP (pictured), said: “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.”

Alexander Geiser, global chief executive, FGS, said: “I would like to thank WPP for their help and long-standing collaboration in growing our firm. KKR’s exceptional investment track record, extensive experience and global resources will be invaluable as we further grow our integrated solutions globally as a standalone firm.”