20th May 2014 12:01
LONDON (Alliance News) - RPS Group PLC said Tuesday it has acquired the entire share capital of US-based environmental consultancy, GaiaTech Holdings Inc, for an enterprise value of USD34 million.
The consultancy said the acquisition is a part of further development of its Built and Natural Environment: North America segment, within which GaiaTech will sit after closing.
GaiaTech largely provides risk management advice to the US industrial sector and its investors and advisors in both transaction related due diligence and its manufacturing and distribution operations. The firm was founded in 1993.
RPS said the business was largely owned by a private equity firm and its CEO. A number of other directors and a number of the staff had equity or stock option holdings. The CEO and all directors and staff equity and option holders are remaining with the business.
The company paid USD26.0 million at completion with the remaining USD5.1 million paid into escrow to settle any contractual claims. As part of the transaction RPS will be acquiring tax benefits with a net present value in cash terms of about USD4.9 million that will accrue over the next nine years, it said.
"It is an important element of the Group's strategy to develop our presence in North America's environmental consultancy market. GaiaTech is a business we have followed for a number of years. It will make an important contribution to the development of our US activities," said Alan Hearne, Chief Executive of RPS.
Earlier this month the firm said it continued to grow "well" in the early part of 2014, supported by acquisitions made in 2013, adding that cash conversion in the first part of the year was ahead of budget. The consultancy said growth was "significantly affected" on consolidation as a result of the increase strength of sterling, but said it remained focused on delivering a satisfactory result for the year. Net bank debt at the end of March was GBP35.3 million, compared with GBP32.4 million at the end of 2013.
Shares in the company were trading 0.90% higher at 268.59 pence per share Tuesday afternoon.
By Alice Attwood; [email protected]; @AliceAtAlliance
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