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WPP PLC on Tuesday said that global investment firm KKR & Co has made a growth investment in FGS Global. FGS is the strategic advisory and communications consultancy in which WPP is a majority shareholder. It has advisory services which cover ‘all aspects’ of strategic communications, such as corporate reputation, crisis management and government affairs. WPP, a London-based advertising and communications company, said private investor Golden Gate Capital will exit its investment in FGS through selling its interest to KKR. WPP said it will still hold a majority stake in FGS, with FGS employees also remaining ‘substantial’ shareholders. ‘The strategic partnership with KKR - one of the world’s leading investment firms - will help to drive the continued growth of FGS Global, the innovation of its service offering and the expansion of its international footprint in the resilient and growing strategic advisory sector,’ WPP said. KKR will make the investment mostly via its European Fund VI, WPP noted. Specific financial details were not provided, but WPP said the investment values FGS at $1.43 billion. It is expected to close before the end of the third quarter, and is subject to regulatory approvals and closing conditions. ‘WPP and FGS Global have built an exceptional communications advisory firm. Stakeholder engagement is a boardroom issue and we are today establishing a powerful strategic partnership between WPP and KKR to support FGS Global as they continue on their path to building an industry-defining global business,’ said KKR partner Philipp Freise. Shares in WPP were up 0.3% to 936.07 pence each in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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