RPS gets deeper into oceanography

Environmental consultancy business RPS has bought US-based oceanographic consulting firm Evans-Hamilton Incorporated (EHI).RPS is paying a maximum of $8.67m for the US firm, with $4.67m being paid up front.EHI provides oceanographic consulting and marine environment measurement services, as well as carrying out environmental and coastal process studies and assisting clients with offshore environmental compliance. It has similar technical capabilities and experience as MetOcean, the business RPS acquired in Australia in August 2007.Severe weather conditions in recent years have increased interest from oil and gas explorers in the sort of information provided by EHI and MetOcean, and RPS expects this to increase further when deep water drilling resumes in the Gulf of Mexico.EHI had revenues of $7.5m in 2010 and made a profit before tax of $1.4m, excluding exceptional items. Net assets at the end of 2010 stood at $0.6m."The acquisition of EHI supports our energy and environmental activities in the US, as well as assisting in the development of our growing business elsewhere in Central and South America. It ... enables us to extend our services in oceanographic consulting on an international basis. We continue to make good progress with the other Energy acquisition we are negotiating," said chief executive Alan Hearne.Broker Northland described the acquisition as "strategically sensible" if RPS can generate sustainable revenue synergies. "Energy and Environmental consulting is viewed as offering growth over the coming years driven by increased regulation. Across the sector companies have identified the area as one of importance as the traditional areas of consultancy offer relatively low growth opportunities," the broker said.