8th Jul 2005 07:00
RPS Group PLC08 July 2005 RPS GROUP PLC("RPS" or "the Group") Acquisition of Business Healthcare Limited ("BHC") RPS announces the acquisition of BHC, a leading provider of occupationalhealthcare services to the UK industrial sector, for a maximum consideration of£3.6 million. Introduction Over the last decade RPS's strategy has been to enhance our market position bydeveloping and broadening our product range, employing highly skilled staff andmaking acquisitions of quality businesses in order to extend our expertise andgeographical reach. Successful implementation of this strategy has enabled us tobuild market leading positions in our chosen areas, and provide the highestquality advice to our clients and rewarding careers to our staff, whilst alsogrowing profits. BHC BHC was established in 1996 as a specialist occupational health provider. It hasa core staff of approximately 60 based mainly in Mansfield, Nottinghamshire andalso at regional clinics in Bristol, Birmingham and Normanton in West Yorkshire.It offers a broad range of services to the public and private sectorsincluding pre-employment assessments, in-service medicals, targeted healthsurveillance programmes and sickness absence management. Services are tailoredto each client's specific needs and are delivered by a dedicated team ofoccupational health nurses and occupational physicians on the client's premisesand by using the company's mobile medical units. BHC has large, blue chipclients in the construction, mining, quarrying, manufacturing, engineering,chemical and food sectors, including Caterpillar, Coca Cola, Corus, Honeywell,Siemens, UK Coal and the DTI. The acquisition of BHC takes RPS into a new area of operation and furtherextends the range of products and services we can offer our clients. Followingacquisition BHC will be integrated with our existing health & safety activitiesenabling it to benefit from both RPS's client base and management systems. Thetwo executive directors of BHC will be remaining with RPS. In the year ended 31 December 2004 BHC had turnover of about £2.9 million andpro forma profit before tax of about £0.5 million, after adjusting directors'salaries to reflect the cost to RPS of their continued employment. At 31December 2004 net assets totalled £0.7 million (including cash of about £0.3million). The maximum total consideration payable for BHC is £3.6 million. At completionthe shareholders of BHC received £1.9 million in cash and 141,311 new RPS sharespriced at 157 pence and valued at £0.2 million. Assuming certain operationalconditions are met, the balance of the consideration (£1.5 million) will bepaid, in cash, over the next three years. Commenting on this transaction, Brook Land (RPS Chairman), said: "Business Healthcare Limited is a highly respected consultancy which gives RPSa significant presence in the occupational health market. The integration of BHCinto our existing health and safety business will extend our range of servicesin this growing sector. The Group's trading has progressed as we anticipated in the statement made on 26May. The acquisition of BHC will assist further growth. Other acquisitions arecurrently being given detailed consideration." 8th July 2005 Enquiries: RPS Group Plc Tel: 01235 863206Dr Alan Hearne, Chief ExecutiveGary Young, Finance Director College Hill Tel: 020 7457 2020Matthew SmallwoodJustine Warren This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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