A large chunk of WPP PLC (LSE:WPP)-owned FGS Global is set to be bought by private equity group KKR in a deal which will value the financial communications firm at US$1.4bn.
FTSE 100-listed WPP owns around 57.4% and will likely remain the majority shareholder, according to Financial Times’ sources, though KKR could acquire up to 30% of FGS from its and employee shares, which account for 40% of the business.
FGS had been eyeing an initial public offering in 2024 after being formed through several mergers of WPP-owned groups, but KKR’s buy-in is expected to delay this.
London-based Finsbury, Frankfurt-based Hering Schuppener and Washington, DC-based Glover Park Group merged in 2020 to form FGS, which then bought US-based Sard Verbinnen in 2021.
US-listed KKR closed its largest European fund this week, meanwhile, raising US$8bn, which it likely has earmarked for the prospective FGS deal.
WPP shares rose 1% to 935.31p in pre-market trading.