07:55 AM EDT, 08/07/2024 (MT Newswires) -- KKR (KKR) said Wednesday it has entered into an agreement to buy a majority stake in public relations firm FGS Global from British ad group WPP plc ( WPP ) .

WPP said Wednesday consideration for the sale of its 50% stake in the media firm will be $775 million, payable in cash at completion. WPP plans to use $767 million of the total cash proceeds to reduce its leverage.

The transaction has no impact on WPP's current year or medium term guidance, the company said, and "is expected to be broadly earnings neutral in 2025."

The sale is expected to close before the end of this year, WPP added, subject to regulatory approvals and other customary closing conditions.

The transaction adds to KKR's initial 28% stake in FGS Global and puts an enterprise value on FGS of $1.7 billion, both KKR and WPP said.

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