LONDON – Public Policy Holding Company, Inc. (AIM: PPHC), a leader in government relations and public affairs, announced the purchase of Texas communications company TrailRunner International LLC for $33 million. The deal, effective January 24, 2025, is expected to immediately increase PPHC's earnings upon completion, which is expected to be April 1, 2025.
The acquisition will expand PPHC's strategic communications capabilities, including business affairs, financial communications, and crisis management. TrailRunner's global presence, with offices in key business locations such as New York and London, and its sports consulting service, TrailRunner Sports, is in line with PPHC's expansion plan.
PPHC's CEO, Stewart Hall, said the acquisition strengthens their leadership in the US market 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, founded in 2016, has a record of financial success, with unaudited revenue of $25.2 million and profit before tax of $4.5 million for the year ending December 31, 2024. The company's revenue saw an 18% annual growth rate in 2018.
The initial consideration will be financed through the issuance of 2,966,138 new common shares and proceeds from PPHC's existing facilities and credit facilities at Bank of America. Additional payments contingent on TrailRunner's revenue growth have been announced through 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 increase shareholder returns. Management is considering a possible US dual listing to improve sales.
The group will present a more detailed growth plan at the Capital Markets 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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