LONDON – Public Policy Holding Company, Inc. (AIM: PPHC), a leader in government relations and public affairs, announced the acquisition of Texas-based communications firm TrailRunner International LLC for $33 million. The agreement, effective January 24, 2025, is expected to immediately enhance PPHC’s earnings upon completion, projected by April 1, 2025.
The acquisition will broaden PPHC’s strategic communications capabilities, including corporate affairs, financial communications, and crisis management. TrailRunner’s global presence, with offices in key business hubs such as New York and London, and its sports advisory service, TrailRunner Sports, aligns with PPHC’s expansion strategy.
PPHC’s CEO, Stewart Hall, stated the acquisition fortifies their US market leadership and establishes them as a global strategic communications group. TrailRunner’s founder, Jim Wilkinson, expressed confidence in PPHC’s ability to support TrailRunner’s international growth.
TrailRunner, established in 2016, has a record of financial success, with unaudited net revenues of $25.2 million and a profit before tax of $4.5 million for the year ended December 31, 2024. The firm’s revenue has seen an 18% compound annual growth rate since 2018.
The initial consideration will be partly funded by issuing 2,966,138 new common shares and cash from PPHC’s existing resources and a credit facility with Bank of America. Additional payments contingent on TrailRunner’s profit growth are stipulated until the end of 2029.
PPHC also provided a trading update for the year ended December 31, 2024, reporting a revenue increase of 10.8% to $149.6 million and an underlying EBITDA increase of 3% to $36.1 million. The company plans to reduce its dividend to align with its growth strategy and enhance shareholder returns. Management is considering a potential US dual-listing to improve stock liquidity.
The group will present a more detailed growth strategy at the Capital Markets Event scheduled for January 30, 2025, at the London Stock Exchange (LON:).
This article is based on a press release statement from Public Policy Holding Company, Inc.
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