REG - WPP PLC - Completion of FGS Global transaction

WPPAnnouncement

03/12/2024 07:00

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RNS Number : 5011O  WPP PLC  03 December 2024

 

 

FOR IMMEDIATE
RELEASE
03 December 2024

 

WPP plc ("WPP")

 

Completion of FGS Global transaction

 

 

WPP today announces that it has completed the transaction to sell its majority
stake in FGS Global to Kite Bidco Inc., an entity controlled by investment
funds managed or advised by KKR. KKR first made a minority investment in FGS
Global in July 2023, and the sale of the remaining majority stake by WPP to
Kite Bidco Inc. was announced in August 2024.

 

The consideration for the sale of WPP's c.50% stake at an Enterprise Value of
$1.7bn (c.£1.3bn(1)) is $775m (£611m) ($707m (£557m) after tax) payable in
cash. This represents an attractive valuation multiple to the 2023 EBITDA and
unlocks significant value for WPP shareholders.

 

The total cash proceeds of $767m (£604m)(2) will be used to reduce WPP's
leverage. The transaction has no impact on WPP's current year or medium-term
guidance and is expected to be broadly earnings neutral in 2025.

 

(1)$ enterprise value and consideration translated into £ at an exchange rate
of £1:$1.27

 

(2)Comprising £557m consideration (after tax) for WPP's c.50% stake as well
as a net £47m inflow for the repayment of a loan made by WPP to FGS, less
FGS's cash on balance sheet

 

 

 For further information:
                                               Investors and analysts

 Media
 Chris Wade                +44 20 7282 4600    Tom Waldron             +44 7788 695864
                                               Anthony Hamilton        +44 7464 532903
 Richard Oldworth,         +44 7710 130 634    Caitlin Holt            +44 7392 280178
 Burson Buchanan           +44 20 7466 5000
                                               irteam@wpp.com
 press@wpp.com                                 wpp.com/investors

 

 

About WPP

WPP is the creative transformation company. We use the power of creativity to
build better futures for our people, planet, clients and communities. For more
information, visit wpp.com (http://www.wpp.com) .

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