KKR has revealed its acquisition of WPP’s entire equity stake in FGS Global, an established global communications and public affairs company.
Approved by FGS management, the proposed deal expands upon KKR’s original minority investment made in July 2023 and values FGS at $1.7bn.
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With the purchase, KKR further demonstrates its strong belief in FGS’s vision and strategy to lead the global communications industry and guide clients through an ever-complex stakeholder economy.
The deal will give the more than 500 employee shareholders of FGS an ownership stake of about 26% in the business.
Since July 2023, when KKR made its first minority investment, FGS has benefited from KKR’s access to resources, network, and experience in creating premier global organisations.
The goals shared by KKR and FGS are to further expand the company’s prominence as a global adviser to boards and C-suites in situations that are crucial to business.
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By GlobalDataUnder the current leadership group, FGS will remain a partner-led organisation.
As long as FGS maintains the greatest standards of independence, client confidentiality, and trust, KKR is dedicated to helping FGS achieve its ambitious expansion ambitions.
Philipp Freise, partner, and co-head of European Private Equity at KKR, stated: “Our investment in FGS reflects our strong commitment to strategic partnerships, where we provide long-term capital and global resources to entrepreneurial teams and world-class businesses. We strongly believe in FGS’s 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’s insight, advice and execution is increasingly essential for organisations to navigate uncertainty and achieve their goals. We look forward to continuing our collaboration and helping FGS realise their vision as a global category leader.”
Alex Geiser, global CEO of FGS, shared: “Our enhanced strategic partnership with KKR is a clear signal of their confidence in our ability to scale and enhance our position as the preeminent consultancy helping leaders successfully navigate the stakeholder economy. With KKR’s reinforced support, we’re poised to accelerate our growth, attract, and empower new talent, and further our commitment to value creation that benefits all our stakeholders, especially our clients and employees. Together, we are ideally positioned to lead growth and innovation of the industry as FGS moves into its next phase as a standalone firm.”
Roland Rudd, global co-chair of FGS added: “I would like to thank WPP for their longstanding partnership. I am particularly grateful to WPP Chair Roberto Quarta and WPP CEO Mark Read for their support as we have grown FGS Global into what it is today. I am delighted that KKR is now backing FGS to become the undisputed global leader in our sector.”
The transaction is scheduled to close before the end of the year, pending regulatory clearances and other standard closing conditions.
KKR is investing in FGS through its European Fund VI, a $8bn fund that assists leading enterprises.
Moreover, the investment follows KKR’s 2021 investment in ERM, the world’s largest pure play sustainability consultancy, and is part of the firm’s joint venture strategy.
