Abstract. In this paper, we find the fusion rules for the free wreath product quantum groups G * S + N for all compact matrix quantum groups of Kac type G and N ≥ 4. This is based on a combinatorial description of the intertwiner spaces between certain generating representations of G * S + N . The combinatorial properties of the intertwiner spaces in G * S + N then allows us to obtain several probabilistic applications. We then prove the monoidal equivalence between G * S + N and a compact quantum group whose dual is a discrete quantum subgroup of the free product G * SUq(2), for some 0 < q ≤ 1. We obtain as a corollary certain stability results for the operator algebras associated with the free wreath products of quantum groups such as Haagerup property, weak amenability and exactness.