KKR announced the acquisition of WPP’s full equity position in FGS Global, a major global communications and public affairs consultancy. The proposed deal is supported by FGS management, builds on KKR’s initial minority investment in July 2023, and values FGS at $1.7 billion.
This investment validates KKR’s conviction in FGS’ vision and strategy to be the leading global communications advisor, helping clients navigate the increasingly complex stakeholder economy. With this transaction, the equity interest of FGS’ 500+ employee shareholders will be about 26% of the company.
Since KKR’s initial minority investment in July 2023, FGS has benefitted from the firm’s access to global resources, network, and expertise in building best-in-class global enterprises. 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 upholds the highest standards of independence, client confidentiality, and trust.
KKR is investing in FGS primarily through its European Fund VI. This $8 billion fund invests in the growth of leading businesses by providing access to KKR’s extensive network and business-building resources. The recent investments from the European Fund VI include OHB, nexeye, Superstruct and Accountor. One of the core strategies of KKR’s European Private Equity team is investing with founders, entrepreneurs, and corporates to provide flexible capital for strategic partnership transactions. And the FGS investment follows a similar theme pursued through KKR’s 2021 investment in ERM, the world’s largest global pure-play sustainability consultancy.
This deal is expected to close by the end of the year, subject to regulatory approvals and other customary closing conditions.
KEY QUOTES:
“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.”
- Philipp Freise, Partner and Co-Head of European Private Equity at KKR
“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.”
- Alex Geiser, Global CEO of FGS
“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.”
- Roland Rudd, Global Co-Chair of FGS
