Private equity firm KKR is buying a stake in financial public relations group FGS Global in which advertising holding company WPP is a major player.
The deal, valuing FGS at $US1.425 billion, leaves WPP as the majority owner of the company and marks the importance of the public relations advisory sector to global advertising groups.
Golden Gate Capital, the private investment firm which has been a shareholder in FGS Global since 2016, will exit its investment through the sale of its interest to KKR.
WPP describes the strategic partnership with KKR as helping 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".
Full commercial details of the KKR haven't been released.
Philipp Freise, partner at KKR, says 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," he says.
FGS Global was recently ranked the number one global PR firm for deal count and value by Mergermarket. In 2022, the firm did 322 deals with a total value of over $US657.
Its advisory services span all aspects of strategic communications, including corporate reputation, crisis management and government affairs. It operates from global offices in 27 cities around the world.
Mark Read, CEO at WPP, says FGS Global has established itself as a global leader in strategic advisory and communications, providing board-level counsel to the world’s leading companies and organisations.
"We are delighted to welcome KKR as a new strategic partner in FGS Global, in a transaction that recognises the tremendous value of the business and its potential for continued strong growth," he says.
Alex Geiser, CEO of FGS Global, sasy his group's mission to help leaders lead in an increasingly complex stakeholder environment.
"The fact that a global investor with the great sophistication and experience of KKR has joined WPP in seeing what we see in our people, the work we do for clients and our future is immensely motivating," he says.
"We are grateful our clients and our employees will be the beneficiaries.”
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