WASHINGTON: Public Policy Holding Company has acquired KP Public Affairs.
PPHC will initially pay $11.4 million as part of the deal, which was finalized on October 1, with future payments of up to a maximum aggregate of $35 million, based on KP’s profit contribution growth through December 2026.
KP will retain its branding, operating as a wholly owned subsidiary of PPHC. There will be no staffing changes as a result of the acquisition.
The move will help PPHC expand out of Washington, DC, tapping into KP’s West Coast footprint in California and 31 staffers.
“This is a really dynamic time in public affairs as we see the strengthening of connections between California and DC with clients and industry engaging with both federal- and state-level policymakers, the technology industry and Silicon Valley in particular,” PPHC CEO Stewart Hall said via email. “This is why we’re pleased to be delivering on what we set out to do at the time of our IPO: broadening our offering into key state capitals.”
Hall added that KP’s experience in key industries such as technology will be “invaluable” to the PPHC group.
PPHC, a bi-artisan U.S. government affairs business, is the parent company of public affairs shops Forbes Tate and Seven Letter and government affairs consulting firm Alpine Group. In December, PPHC went public on the London Stock Exchange.
In 2021, PPHC reported a revenue of $99.3 million, up over 28.2% from the year prior, according to its annual report. As of June 30, net cash was $17.9 million.
Headquartered in Sacramento, California, KP provides full-service lobbying, public affairs and PR work for corporate, nonprofit and U.S. government clients. Last year, KP posted revenue of $10.9 million.