5th Nov 2007 09:55
RPS Group PLC05 November 2007 RPS GROUP PLC("RPS" or "the Group") Acquisition of The Scotia Group Inc. ("Scotia") RPS announces the acquisition of Scotia, a US based consultancy providing adviceto the oil and gas industry. Scotia was established in 1981 and provides consultancy services to the oil andgas industry in respect of exploration activities. It is based in Houston andDallas, Texas, undertaking projects on an international basis. Scotia's skillsfit well with the range of services that RPS currently offers and gives us scopeto expand our client base and geographical reach, particularly into SouthAmerica. The Scotia management team and staff are remaining with RPS and the businesswill be integrated with RPS's existing business in the US. There are 20 vendorsall employed by or working with Scotia. The Scotia results will be includedwithin our Energy business segment. In the year ended 31 December 2006 Scotia had revenues of $8.5 million (£4.2million) and profit before tax of $1.6 million (£0.8 million). Net assets at 31December 2006 were $1.7 million (£0.8 million). RPS is acquiring the equity of Scotia for a maximum total consideration of $5.9million (£2.9 million). $2.95 million (£1.5 million) was paid in cash atcompletion. A further $1.5 million (£0.7 million) in cash will be paid on thefirst and second anniversaries of the transaction, subject to certainoperational conditions being met. Alan Hearne, Chief Executive of RPS commented: The acquisition of Scotia, a highly respected international business, enables usto expand further the range of services we offer our oil and gas clients in theUS. Scotia's particular experience in respect of projects in South Americaextends our knowledge base in' a timely fashion. Our Energy business continuesto trade well, as does the Group as a whole. Further acquisitions in the US andelsewhere are being actively considered. 5 November 2007 RPS is an international consultancy providing advice upon the development ofnatural resources, land and property, the management of the environment and thehealth and safety of people. We trade in the UK, Ireland, the Netherlands,North America and Australia and undertake projects in many other parts of theworld. Further information about Scotia Group Inc. can be found on their websitewww.scotia-group.com ENQUIRIES RPS Group plc 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:
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