RPS Group to incorporate engineering consultant into its UK business
Natural resources and health and safety consultant RPS Group has agreed to pay £10.1m for engineering consultant RWG, which it plans to integrate into its UK planning and development business.
The group will pay £8.4m in cash and £1.7m in new RPS shares for the engineering consultant's goodwill, trading name and key assets and liabilities.
At completion of the deal, £5.2m in cash was paid and £1.7m worth of shares issued to the vendors. The balance will be settled in a series of equal annual cash payments over the next three years.
Brook Land, chairman of RPS, said that the acquisition would improve its strategic position by enabling it to provide advice to clients on achieving energy efficiency at all stages in the planning and development of new buildings.
Nine of the eleven partners selling the business have signed service agreements committing them to RPS for at least three years. The remaining two retired at completion.
RWG provides advice to public and private bodies in the health, retail and education sectors on the cost-effective planning and design of large complex buildings, with an increasing emphasis on energy efficiency.
Its revenues in the year ended 30 April 2007 were £12.1m, with pre-tax profit of £1.48m.
RPS said more acquisitions will be completed shortly.