KKR to acquire majority position in FGS Global to support long-term growth; FGS to become standalone communications and public affairs consultancy
KKR has announced the acquisition of WPP's full equity position in FGS Global, valuing the company at $1.7 billion. This move builds on KKR's initial minority investment in July 2023 and is supported by FGS management. The transaction will result in FGS becoming a standalone communications and public affairs consultancy, with over 500 employee shareholders holding approximately 26% equity interest.
KKR's investment, made primarily through its European Fund VI, aims to support FGS's long-term growth and extend its position as a leading global advisor to Boards and C-suites. The existing FGS leadership team will continue to manage the partner-led firm, with KKR committed to maintaining FGS's independence and client confidentiality standards.
The deal is expected to close by the end of the year, subject to regulatory approvals and customary closing conditions.
KKR ha annunciato l'acquisizione della piena partecipazione azionaria di WPP in FGS Global, valutando l'azienda 1,7 miliardi di dollari. Questa mossa si basa sull'investimento iniziale di minoranza di KKR nel luglio 2023 ed è sostenuta dalla direzione di FGS. La transazione porterà FGS a diventare una consulenza indipendente in comunicazione e affari pubblici, con oltre 500 azionisti dipendenti che detengono circa il 26% della partecipazione azionaria.
L'investimento di KKR, realizzato principalmente attraverso il suo European Fund VI, mira a sostenere la crescita a lungo termine di FGS e ad estendere la sua posizione come consulente globale di riferimento per i Consigli di Amministrazione e i top manager. L'attuale team di leadership di FGS continuerà a gestire la società guidata dai partner, con KKR impegnata a mantenere l'indipendenza di FGS e gli standard di riservatezza per i clienti.
Si prevede che l'affare venga concluso entro la fine dell'anno, soggetto ad approvazioni regolatorie e condizioni di chiusura consuete.
KKR ha anunciado la adquisición de la participación plena de WPP en FGS Global, valorando la empresa en 1.7 mil millones de dólares. Este movimiento se basa en la inversión inicial de minoría de KKR en julio de 2023 y cuenta con el respaldo de la dirección de FGS. La transacción resultará en que FGS se convierta en una consultoría independiente de comunicaciones y asuntos públicos, con más de 500 empleados accionistas que poseen aproximadamente el 26% de la participación accionaria.
La inversión de KKR, realizada principalmente a través de su European Fund VI, tiene como objetivo apoyar el crecimiento a largo plazo de FGS y extender su posición como asesor global líder para Juntas y ejecutivos de alto nivel. El actual equipo de liderazgo de FGS continuará gestionando la firma dirigida por socios, con KKR comprometido a mantener la independencia de FGS y los estándares de confidencialidad para los clientes.
Se espera que el acuerdo se cierre a finales de año, sujeto a aprobaciones regulatorias y condiciones de cierre habituales.
KKR은 FGS Global의 WPP 전체 지분 인수를 발표하며 회사를 17억 달러로 평가했습니다. 이 움직임은 2023년 7월 KKR의 초기 소수 지분 투자를 바탕으로 하며, FGS 경영진의 지지를 받고 있습니다. 이번 거래를 통해 FGS는 독립적인 커뮤니케이션 및 공공 업무 컨설팅 회사가 되며, 500명 이상의 직원 주주가 약 26%의 지분을 보유하게 됩니다.
KKR의 투자는 주로 European Fund VI를 통해 이루어지며 FGS의 장기 성장 지원과 이사회 및 C-suite에 대한 글로벌 주요 자문 역할을 강화하는 것을 목표로 합니다. 기존 FGS 리더십 팀은 파트너가 이끄는 회사를 계속 관리하며, KKR은 FGS의 독립성과 고객 비밀 유지 기준을 지키겠다고 약속했습니다.
이번 거래는 연말까지 종료될 예정이며, 규제 승인을 포함한 일반적인 종료 조건에 따라 진행됩니다.
KKR a annoncé l'acquisition de la position d'équité complète de WPP dans FGS Global, valorisant l'entreprise à 1,7 milliard de dollars. Ce mouvement s'appuie sur l'investissement initial minoritaire de KKR en juillet 2023 et bénéficie du soutien de la direction de FGS. La transaction fera de FGS une société de conseil indépendante en communication et affaires publiques, avec plus de 500 employés actionnaires détenant environ 26 % de participation.
L'investissement de KKR, réalisé principalement à travers son Fonds Européen VI, vise à soutenir la croissance à long terme de FGS et à consolider sa position de conseiller global leader pour les conseils d'administration et les cadres dirigeants. L'équipe de direction actuelle de FGS continuera à gérer la société dirigée par des partenaires, KKR s'engageant à maintenir l'indépendance de FGS et les normes de confidentialité des clients.
Il est prévu que l'accord soit finalisé d'ici la fin de l'année, sous réserve des approbations réglementaires et des conditions de clôture habituelles.
KKR hat die Übernahme der vollständigen Eigenkapitalposition von WPP in FGS Global angekündigt und bewertet das Unternehmen mit 1,7 Milliarden Dollar. Dieser Schritt baut auf KKR's anfänglicher Minderheitsinvestition im Juli 2023 auf und wird von der FGS-Geschäftsführung unterstützt. Die Transaktion wird dazu führen, dass FGS zu einer eigenständigen Kommunikations- und Public-Affairs-Beratung wird, mit über 500 Mitarbeiteraktionären, die etwa 26% des Eigenkapitals halten.
Die Investition von KKR, die hauptsächlich durch den European Fund VI erfolgt, zielt darauf ab, das langfristige Wachstum von FGS zu unterstützen und seine Position als führender globaler Berater für Vorstände und C-Suiten auszubauen. Das bestehende Führungsteam von FGS wird weiterhin das partnergeführte Unternehmen leiten, wobei KKR sich verpflichtet hat, die Unabhängigkeit von FGS und die Vertraulichkeitsstandards für Kunden zu wahren.
Der Deal wird voraussichtlich bis Ende des Jahres abgeschlossen sein, vorbehaltlich der Genehmigungen der Aufsichtsbehörden und üblicher Abschlussbedingungen.
- Valuation of FGS Global at $1.7 billion, indicating strong market position
- KKR's increased investment demonstrates confidence in FGS's growth potential
- Employee shareholders retain significant equity interest (26%) in the company
- Access to KKR's global resources and expertise to support FGS's growth
- Potential for accelerated growth and talent acquisition as a standalone firm
- Potential integration challenges as FGS transitions to a standalone entity
- Possible short-term disruptions during ownership transition
Insights
KKR's acquisition of WPP's stake in FGS Global, valuing the company at
Financially, this move allows KKR to leverage its
This acquisition signifies a growing trend in the professional services sector, where private equity firms are increasingly recognizing the value of communications and public affairs consultancies. The stakeholder economy's complexity is driving demand for specialized advisory services, positioning FGS favorably in a high-growth market.
KKR's investment strategy here mirrors its approach with ERM, indicating a pattern of backing consultancies addressing critical business challenges. This trend could spark further consolidation or PE interest in the sector. For FGS, the standalone status and KKR's resources could enhance its competitive edge against rivals like Brunswick and Teneo, potentially reshaping the industry landscape.
The transaction's structure presents an interesting corporate governance model. By maintaining significant employee ownership (
However, the shift from a publicly traded parent (WPP) to private equity ownership may bring changes in transparency and reporting practices. KKR's commitment to FGS's independence and client confidentiality will be important to watch, as these are foundational to the consultancy's credibility and success in handling sensitive client matters.
Since KKR’s initial minority investment in July 2023, FGS has benefitted from KKR’s access to global resources, network and expertise in building best-in-class global enterprises. Both KKR and FGS are focused on enhancing the Company’s growth and extending its leading position as a global advisor to Boards and C-suites in business-critical situations. FGS will continue to be a partner-led firm, managed by the existing leadership team. KKR is committed to supporting FGS’s ambitious growth plans while ensuring FGS continues to uphold the highest standards of independence, client confidentiality and trust.
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 organizations to navigate uncertainty and achieve their goals. We look forward to continuing our collaboration and helping FGS realize their vision as a global category leader.”
Alex Geiser, Global CEO of FGS, said: “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.”
KKR is making the investment in FGS primarily through its European Fund VI, an
The transaction is expected to close by the end of the year, subject to regulatory approvals and other customary closing conditions.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about the Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About FGS
FGS Global is the preeminent global communications and public affairs consultancy, with approximately 1,400 professionals around the world, advising clients in navigating complex stakeholder situations and reputational challenges. FGS was formed from the combination of Finsbury, The Glover Park Group, Hering Schuppener and Sard Verbinnen & Co to offer board-level and C-suite counsel in all aspects of strategic communications — including corporate reputation, crisis management, and public affairs and is also the leading force in financial communications worldwide.
FGS offers seamless and integrated support with offices in the following locations:
FGS is consistently ranked a Band 1 PR firm for Crisis & Risk Management and for Litigation Support by Chambers and Partners. For the second year, FGS was ranked #1 Global M&A PR firm by Deal Count and Value in 2023 by Mergermarket.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806369145/en/
KKR
Julia Leeger/ Miles Radcliffe-Trenner
media@kkr.com
FGS Global
Dorothy Burwell / Jennifer Loven / Dirk von Manikowsky
mediaglobal@fgsglobal.com
WPP
Chris Wade / Richard Oldworth
press@wpp.com
Source: KKR
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