RPS acquires US environmental consultancy

Oil and gas consultancy RPS has acquired US-based GaiaTech Holdings, it announced on Tuesday.The environmental consultancy, which was bought for an enterprise value of $34m (£20.2m), employs 85 staff who provide risk management advice to the US industrial sector and its investors and advisors in both transaction related due diligence and its manufacturing and distribution operations. The consideration paid at completion was $26m (£15.5m). The remainder of the consideration, $5.1m (£3m), was paid into escrow to settle any contractual claims. Debt of $6.7m (£4m) was settled at completion. There was approximately $3.9m (£2.3m) of cash in the GT balance sheet at completion. As part of the transaction RPS will be acquiring tax benefits with a net present value in cash terms of about $4.9m (£2.9m) that will accrue over the next nine years.The firm will form part of RPS's Built and Natural Environment segment. The business was largely owned by a private equity firm and its Chief Executive Officer (CEO), RPS explained, while a number of other directors and a number of the staff had equity or stock option holdings. The CEO and all directors and staff equity and option holders are remaining with the business. In 2013, GT had gross revenue of $31.9m (£19.0m) and net revenue of $15.4m (£9.2m). Profit before tax in 2013 was US$4.8m (£2.9m), after adjustment for non-recurring items. Profit after tax was $2.9m (£1.7m). Net assets at the year-end were $7.8m (£4.7m). Alan Hearne, Chief Executive of RPS, said: "It is an important element of the group's strategy to develop our presence in North America's environmental consultancy market. "GaiaTech is a business we have followed for a number of years. It will make an important contribution to the development of our US activities."The group's share price climbed 0.9% to 268.60p by 09:20.NR