US lobby group acquires London’s Pagefield in £30m deal
London-listed government relations and lobbying group Public Policy Holding Company (PPHC) has expanded into the City after acquiring Pagefield, in the latest move in the spin war.
The US-based PPHC operated nine companies across the Atlantic, but as part of its geographic reach strategy, London has become its first international acquisition with public affairs advisory Pagefield.
PPHC has been targeting acquisitions within the key political capitals of London and Brussels, as well as more US states, in order to broaden its geographic reach and policy expertise. But this acquisition outside the US.
The US-based business IPO‘d in London in December 2021.
The deal is worth £30m. This is split between initial consideration of £16.2m, part funded by £15.1m in cash and £1.1m in shares, with the balance in potential earnout payments should Pagefield achieve certain profit targets through to 2028.
Pagefield, a City-based business, was founded in 2010 by Mark Gallagher, Oliver Foster and Sara Price and has 36 full-time employees. For the year ended 31 December 2023, Pagefield’s unaudited results showed net revenue of £6m and profit before tax of £2.3m.
The business will now be a wholly-owned subsidiary of PPHC, but it will retain its distinct brand identity and long-standing executive, senior management team, and employees.
PPHC has revealed that to support the financing of the initial cash element of the acquisition, it has expanded the senior secured supplemental credit facility with Bank of America from $13m (£10.1m) to $25m (£19.5m).
Of this facility, $6m (£4.7m) was deployed for the recent acquisition in the US, and the remaining balance of $19m (£14.9m has been drawn to fund the cash element of Pagefield’s initial consideration.
Commenting on the deal, Stewart Hall, CEO of PPHC said: “We have been targeting international M&A, particularly into the key political capitals of London and Brussels, since IPO. In Pagefield, we have acquired a high-quality business with outstanding people and a sought-after client base.”
“Our clients are global by nature, present in multiple geographies and it is essential that we can support them wherever they operate,” he added.
This deal is the latest in a wave of pub affairs and press relations takeovers.
Back in 2020, the UK’s largest public affairs agency Cicero joined AMO, a network of communications firms owned by Paris-based media giant Havas.
Then last January, PR and advisory giant Teneo that was founded by Andrew Grant bought comms firm Tulchan. While in the same month, Finsbury Glover Hering and Sard Verbinnen & Co completed its merger to create a global strategic comms outlet.
While, SEC Newgate got a new owner last July after Investcorp bought a £100m majority stake in the PR business.