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RPS Group Makes Two Acquisitions To Cut Oil And Gas Sector Reliance

Fri, 30th Oct 2015 07:50

LONDON (Alliance News) - Energy consultancy RPS Group PLC on Friday said it has spent a total of GBP24.0 million on acquisitions in the US and Australia in a bid to further reduce its reliance on sales to the weakened oil and gas industry.

RPS said it will pay USD13.5 million for Iris Environmental, a California-based environmental services consultancy. The company primarily focuses on environmental risk management services for clients in California, particularly Silicon Valley technology companies.

The consideration will comprise a USD8.1 million upfront payment, with the remainder due dependent on Iris hitting operational targets in the two years following the deal.

RPS has also struck a AUD32.4 million deal to acquire Everything Infrastructure Group Pty Ltd, a Sydney-based infrastructure development, delivery and management consultancy.

The company focuses on the road, heavy and light rail, power and water sectors and will boost RPS's project management capabilities in the Australian market.

The consideration includes a AUD19.4 million upfront payment, with the rest to be paid over two years, against subject to operational targets being met.

"The acquisition of Iris and EIG further develops group activities in markets with good prospects both in the immediate future and longer term," said RPS Chief Executive Alan Hearne.

"As we are close to the year end we do not expect a material contribution from either business in 2015. However, they should make a good contribution in 2016, diluting further the continuing effect of the downturn in the oil and gas sector on our Energy business," he added.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2015 Alliance News Limited. All Rights Reserved.

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