LONDON, UK: Public Policy Holding Company (AIM: PPHC), the government relations and public affairs group, has acquired Lucas Public Affairs LLC (LPA), a premier California-based public affairs firm, for an initial consideration of $7.5 million.

The acquisition is immediately accretive to the Group’s underlying earnings, a statement noted.

This is PPHC’s third significant acquisition since IPO in December 2021 and LPA becomes the 9th brand to sit within the Group’s broad umbrella.

Based in Sacramento, California and founded in 2006, LPA is led by Donna Lucas, CEO, and Cassandra Pye, President. It has 28 full-time employees and represents leading corporations and organisations on issues of local, state and national importance.

The acquisition is in line with the Group’s growth strategy and, alongside the 2022 acquisition of KP Public Affairs, significantly expands its already market leading offering in California.

As a wholly-owned subsidiary of PPHC, LPA will retain its distinct brand identity and its long-standing management team and staff.

The initial consideration of $7.5 million was funded 80% ($6.0 million) in cash and 20% ($1.5 million) through the issue of new common shares in PPHC to the owners of LPA.

Further earnout payments are contingent on LPA achieving an agreed level of profit growth between 2024 and 2028, promoting alignment with the Group’s broader growth objectives.

Lucas Public Affairs is a leading public affairs agency in California, the largest state economy in the US and is measured as the fifth largest global economy. California is also at the forefront of major issues including technology regulation, privacy, climate change, energy, and environmental regulations.

LPA currently has 28 employees, including senior experts and practitioners in corporate communications, issues management, and state-based campaigning.

Lucas Public Affairs helps clients navigate California’s complex legislative and regulatory environment. The firm is known for high-level reputation, issue management and strategic communication campaigns – tapping into the team’s deep familiarity with California’s political, business and media landscape. Practice areas of expertise reflect the issues that define California’s future including energy and climate, transportation and logistics, K-12 and higher education, water, technology and biotech, housing, health care and aging, insurance, among others.

For the year ended 31 December 2023, LPA recorded (unaudited) net revenues of $6.5 million. Profit before tax amounted to $1.0 million, after adjusting for PPHC’s remuneration policy.

Stewart Hall, CEO of PPHC, commented: “The acquisition of LPA significantly strengthens our position in a key US state and increases our expertise in critical sectors including technology, green energy, and healthcare. This is an important step towards PPHC’s stated goal of being the world’s largest, most comprehensive provider of government relations and policy communication services for corporations and NGOs.

“There are very few other jurisdictions that matter more to our clients than California, and nowhere else is the future of business being affected as in Sacramento. LPA’s impressive team of communications and public affairs experts are a very strong addition to the growing PPHC family.

“As with our distinctly branded firms in Washington DC and Boston, the addition of LPA, alongside our partners at KP Public Affairs, makes PPHC’s expertise in California second-to-none. Both firms will continue to operate independently.”

Donna Lucas, CEO of LPA, commented: “We are genuinely excited about what this opportunity means for LPA’s clients and for our team. We had a short list of what we needed to make this move. We wanted stability, a commitment to our roster of current and future firm leaders and we wanted the kind of partner who would allow us to continue to remain independent and true to our culture while continuing to grow. PPHC was founded by people like us who understand our business. They value what we do. We could not ask for a better partner.”

Cassandra Pye, President of LPA, commented: “This partnership gives LPA access to additional assets and tools to support our clients and their priorities. PPHC has collected an amazing network of practitioners leading public affairs operations in DC, and in California, is investing in one of the most talented groups of public affairs practitioners in the state.

“Donna and I are really excited to continue to lead LPA with this exceptional team and with partners who support our commitment to excellence. Our clients are the beneficiaries here. We’re strengthening our bench now and for the future.”