13th Mar 2008 07:00
RPS Group PLC13 March 2008 RPS GROUP PLC("RPS" or "the Group") Acquisition of R.W.Gregory ("RWG") RPS announces the acquisition of RWG, a UK based consultancy providingspecialist engineering advice to blue chip clients in the public and privatesectors. RWG was established in 1934 and became a limited liability partnership in 2002.It provides specialist engineering consultancy services which enable a widerange of government agencies and private companies plan and design large complexbuildings cost effectively. An expanding part of RWG's role in projects is toadvise upon reducing energy use in buildings, with the consequence of lesseningtheir carbon footprint. RWG currently employs 130 full time staff in offices inNewcastle, Leeds, Birmingham, Manchester and Cardiff. It specialises inproviding advice to the health, education and retail sectors and is also activein a number of other sectors, including aviation. It has buoyant order books. RWG will be integrated with RPS's Planning and Development business in the UK.It is envisaged that our existing businesses in the UK and Ireland will benefitfrom the involvement of RWG in future projects and that with RWG's skills wewill be able to accelerate the development of our energy efficiency consultancyactivities. All RWG staff have joined RPS and will be engaged in the combinedbusiness going forward. Nine of the 11 partners who are the vendors of thebusiness, have signed service agreements committing them to RPS for at leastthree years; the other two partners retired at completion. In the year ended 30 April 2007, RWG had revenues of £12.1 million and adjustedprofit before tax of £1.48 million (having normalised partner remunerationcosts). Net assets at 30 April 2007 were £2.75 million. RPS is acquiring the goodwill, trading name and the key assets and liabilitiesof RWG, for a maximum total consideration of £10.1 million, of which £8.4million will be paid in cash and £1.7 million in new RPS shares. Atcompletion£5.2 million was paid in cash and 572,969 shares to the value of £1.7million were issued to the vendors. Subject to certain operational conditionsbeing met, the balance of the consideration (£3.2 million) will be paid in cash,in approximately three equal parts, on 12 March in 2009, 2010 and 2011. Application will be made to the UK Listing Authority and to the London StockExchange for listing of the new RPS shares to be issued as part of theconsideration. These new shares will rank equally with the existing ordinaryshares Brook Land, Chairman of RPS commented: "Our Planning and Development business has been the bedrock of RPS's developmentover the last three decades. It is recognised as market leading in the UK andIreland and is growing quickly in Australia. From time to time we extend itsrange of skills into new and important areas. The acquisition of RWG willposition us strategically in providing advice to our clients on achieving energyefficiency at all stages in the planning and development of new buildings. "Our acquisition pipeline remains strong and the RPS board anticipates that moreacquisitions will be completed shortly, further underpinning the Group's growth." 13 March 2008 RPS is an international consultancy providing advice upon the development ofnatural resources, land and property, the management of the natural and builtenvironments and the health and safety of people. We trade in the UK, Ireland,the Netherlands, Poland, North America, South East Asia and Australia andundertake projects in many other parts of the world. ENQUIRIES RPS Group plcDr Alan Hearne, Chief Executive Tel: 01235 863 206Gary Young, Group Finance Director College HillJustine Warren Tel: 020 7457 2020Matthew Smallwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RPS.L