LONDON – Public Policy Holding Company, Inc. (AIM: PPHC), a leader in government relations and public affairs, announced the acquisition of Texas-based communications company TrailRunner International LLC for $33 million. The agreement, effective January 24, 2025, is expected to be immediately accretive to PPHC’s earnings upon completion, which is expected to be April 1, 2025.
The acquisition will expand PPHC’s strategic communications capabilities, including corporate affairs, financial communications and crisis management. TrailRunner’s global presence, with offices in key business centers such as New York and London, and its sports advisory service, TrailRunner Sports, aligns with PPHC’s expansion strategy.
PPHC CEO Stewart Hall said the acquisition strengthens their leadership in the US market and establishes them as a global strategic communications group. TrailRunner founder Jim Wilkinson expressed confidence in PPHC’s ability to support TrailRunner’s international growth.
TrailRunner, founded in 2016, has a track record of financial success, with unaudited net revenues of $25.2 million and pretax profits of $4.5 million for the year ended December 31, 2024. The company’s revenue is growing at an annualized rate of 18% 2018
The initial consideration will be funded in part by the issuance of 2,966,138 new shares of common stock and cash from PPHC’s existing sources and a credit facility with Bank of America. Additional payments dependent on the growth of TrailRunner’s profits are expected until the end of 2029.
PPHC also released updated trading figures for the year ended December 31, 2024, reporting a 10.8% increase in revenue to $149.6 million and a 3% increase in underlying EBITDA to $36.1 million. The company plans to cut its dividend to align with its growth strategy and increase shareholder returns. Management is considering a potential dual listing in the US to improve the liquidity of the shares.
The group will present a more detailed growth strategy at a capital market event scheduled for January 30, 2025. London Stock Exchange (LON:).
This article is based on a press release from Public Policy Holding Company, Inc.
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