WPP announced on Tuesday that it had completed the sale of its majority stake in strategic communications consultancy FGS Global to Kite Bidco, a company controlled by investment funds managed by KKR.

In a press release, the British advertising group recalls that KKR had taken a minority stake in FGS Global in 2023, before announcing its intention to take full control this summer.

WPP specifies that the transaction will be based on a total enterprise value of $1.7 billion, including a cash consideration of $775 million for its stake alone.

The company points to an "attractive" valuation multiple in view of the operating profit (Ebitda) generated last year by FGS Global, which will enable it to create value for shareholders.

The proceeds from the operation are to be used entirely to reduce debt.

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