18th Oct 2013 07:45
LONDON (Alliance News) - RPS Group PLC Friday said it will buy Norwegian project management consultancy OEC Consulting AS for a maximum of GBP31.5 million in cash, a move that expands its presence into the Scandinavian energy sector.
The deal includes buying out minorities in three OEC subsidiaries. It will pay an initial GBP20 million and then a further GBP5.3 million in May 2014 and two subsequent annual payments of GBP3.1 million as long as certain operational conditions are met.
Oslo-based OEC provides project management services to the North Sea oil and gas industry, particularly the Norwegian sector. It employs about 100 and reported revenues of GBP27 million and pretax profit of GBP3.5 million in 2012.
"RPS sees a significant long term opportunity to expand both its Energy and BNE businesses in Scandinavia," RPS Chief Executive Alan Hearne said in a statement. "As we have successfully done in the past when establishing our presence in a new market, we have identified a high quality business capable of providing a platform for both organic and acquisitive growth."
RPS shares were down 0.5% at 277.4605 pence early Friday.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
RPS.L