FGS Global will be valued at $1.4 billion when private equity company KKR & Co Inc (KKR.N) buys a large share.
KKR will purchase a 30% interest from FGS Global’s top staff and major investors, including WPP Plc (WPP.L). Martin Sorrell’s WPP will own most of FGS Worldwide.
KKR’s $8-billion European Fund VI is buying Golden Gate Capital’s total investment in FGS Global.
We back great management teams in growing sectors where we can provide more than cash. “We feel the strategic communications area is certainly at an exciting and critical stage,” said Philipp Freise, co-head of European private equity at KKR.
In 2021, U.S.-based Sard Verbinnen & Co and Finsbury Glover Hering merged to become FGS Global, valued at $917 million. Finsbury, Glover Park Group, and Hering Schuppener established Finsbury Glover Hering in 2021.
FGS Global employs 1,200 individuals in 27 offices worldwide. Sources say it made $435 million in 2022.
Customers include SoftBank Group Corp (9984.T), Apple Inc (AAPL.O), the National Football League, and Visa Inc (V.N).
Co-Chairmen Roland Rudd, Carter Eskew, George Sard, and Alexander Geiser lead FGS Worldwide. In addition, North America has four co-CEOs: Andrew Cole, Paul Kranhold, Winnie Lerner, and Joel Johnson.
Lerner claimed the acquisition would allow the firm to offer shares to all employees in an interview.
“We want to create this business for the future—we want our younger colleagues to perceive this as a place where they want to grow and prosper,” Lerner added.
Investors have invested big in firms that advise huge corporations, boardrooms, and executives on financial negotiations, crisis management, and other vital concerns, resulting in a rush of dealmaking in the fast-growing financial communications market.
In January, CVC Capital Partners-backed Teneo acquired London-based Tulchan. In addition, BDT Capital invested heavily in Brunswick Group in 2021.
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