RPS acquires US consultancy firm - UPDATE

RPS has acquired Knowledge Reservoir Group Inc., a reservoir engineering and geosciences consulting firm, for a maximum consideration of 20m dollars in order to further develop the company's energy activities. The business operates primarily in the US, but undertakes projects in other parts of the world. Its activities will be merged with the international activities of RPS Energy.The cost of this integration will be incurred in 2013, reducing this year's contribution to group profit.Alan Hearne, Chief Executive of RPS, said: "We are delighted to have been able to strengthen further our reservoir engineering and geoscience capabilities, particularly in the US, with the addition of a high quality business such as KR. The technical and geographical fit between KR and our existing businesses in this specialist area is excellent and we see increasing demand across our oil and gas businesses worldwide for this type of expertise." In the year ended December 31st 2012 the business had revenues of $25.7m (£16.5m) and profit before tax of $3.0m (£1.9m), after adjustment for non-recurring items. Net assets at the year-end were $14.0m (£9.0m). Gross assets totalled $26.0m (£16.7m), while net debt amounted to $5.9m (£3.8m). NR