Public Policy Holding Company, Inc. announced (AIM: PPHC), a leading government relations and public affairs firm, has announced the acquisition of Texas communications business TrailRunner International LLC for $33 million. The agreement, effective January 24, 2025, is expected to immediately boost PPHC's earnings upon completion, expected by 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 major business centers such as New York and London, and its sports advisory service, TrailRunner Sports, are in line with PPHC's expansion strategy.
Stuart Hall, CEO of PPHC, said the acquisition fortifies 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, established in 2016, has a record of financial success, with non-exchange net revenues of $25.2 million and pre-tax profit of $4.5 million for the year ending December 31, 2024. The company's revenue has seen an 18% compound annual growth rate since Now 2018.
This initial consideration will be funded in part by the issuance of 2,966,138 new common shares and cash from the existing resources of PPHC and a credit facility with Bank of America. Additional payments are stipulated for Trailrunner's profit growth through the end of 2029.
PPHC also provided a business update for the year ending 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 listing to improve equity liquidity.
The group will present a more detailed growth strategy at a capital markets event scheduled for January 30, 2025, in London Stock Exchange (color :).
This article is based on a press release from Public Policy Holdings, Inc.
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