KKR European Fund VI, a fund managed by KKR & Co. Inc. (NYSE:KKR) entered into an agreement to acquire an additional 50% stake in FGS Global Inc from WPP plc (LSE:WPP) for approximately $780 million on August 7, 2024. Prior to the transaction, KKR held 28% stake in FGS. The proposed transaction is supported by FGS management. The proceeds from the sale of approximately $770 million will be used to reduce WPP's leverage. For the period ending December 31, 2023, FGS Global Inc reported total revenue of approximately $470 million, operating profit of $87 million and EBITDA of $90 million. The board of WPP considers that the terms of the transaction are fair and reasonable as far as WPP shareholders are concerned.

The transaction is subject to regulatory approvals and other customary closing conditions. The deal has been approved by the board of directors of WPP. The transaction is expected to close before the end of 2024. As of August 7, 2024, the transaction is expected to close in Q4 2024. The transaction is reflecting significant value accretion to WPP shareholders since 2020.

Goldman Sachs International acted as financial advisor to WPP plc. Melissa Sawyer, Matt Goodman, John Karol, Isaac Wheeler, Ha Jin Lee, Andrew Thomson, Heather Coleman and Mario Schollmeyer of Sullivan & Cromwell LLP acted as legal advisors to FGS Global Inc. Alvaro Membrillera, Pelin Demirdere Eski, Adam Wollstein, Steven Choi, Anna Van de moortel, Ian Barratt, Jia Meng and Emma Flett of Kirkland & Ellis acted as legal advisors to KKR & Co. Inc.

KKR European Fund VI, a fund managed by KKR & Co. Inc. (NYSE:KKR) completed the acquisition of an additional 50% stake in FGS Global Inc from WPP plc (LSE:WPP) on December 3, 2024.