WPP PLC

M&A Activity • Dec 3, 2024

National Storage Mechanism | Additional information

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.£1.3bn1) 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:
Media			Investors and analysts
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 .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DISFLFFTFDLFIIS