Public Policy Holding Company, owner of Seven Letter, Crossroads Strategies, Alpine Partners, O'Neill & Associates and Forbes Tate PA shops, is acquiring KP Public Affairs in Sacramento for a maximum outlay of $35M.

It's the first major deal for PPHC since it went public on the London Stock Exchange in December 2021 and marks the initial foray into the California lobbying, PA and government relations arena.

Stewart Hall, CEO of PPHC, said the transaction delivers on the strategy to broaden the firm's reach into key state capitals and deepen its expertise in areas such as technology, renewable energy and natural resources.

Founded in 1996, KP has 31 professional staffers. It generated revenues of $10.9M during 2021 and chalked up $3.2M in pretax profit.

PPHC will initially shell out a payment of $11.4M, of which 90 percent will be cash and 10 percent stock for KP.

Future cash/stock payments are based on KP's profit growth through December 2026.

The Stevens Group represented KP in the transaction.