Acquisition of Mountainheath Services Ltd ("MSL")
RPS announces the acquisition of MSL, a provider of specialist laboratory services to industry in the UK and mainland Europe.
MSL was established in 1995 and provides analytical services to the environmental service industry from its laboratory in Letchworth, Hertfordshire.
The acquisition of MSL complements RPS’s existing laboratory capabilities in the UK and the Netherlands. MSL specialises in the analysis of pesticide and persistent organic pollutants, an area of growing importance as these can cause significant harm both to humans and the natural environment. The three directors and MSL staff are remaining with RPS.
In the year ended 31 March 2008, MSL had revenues of £1.2 million and profit before tax, adjusted to reflect ongoing employment costs for the MSL directors, of £0.4 million. Net assets at 31 March 2008, adjusted for agreed pre-acquisition dividends settled prior to completion, were £0.4 million, including cash of £0.2 million.
RPS is acquiring the entire share capital of MSL, from the three directors, for a maximum total consideration of £1.9 million, payable in cash. Consideration paid at completion was £1.2 million. Subject to certain operational conditions being met, a further £0.35 million will be paid on each of the first and second anniversaries of the transaction.
Alan Hearne, Chief Executive of RPS, commented:
"RPS completed a number of transactions in the first half of 2008. The integration of those businesses is proceeding well. Our balance sheet remains strong and we have sufficient resources to continue our acquisition strategy. We have begun, therefore, exploring a range of new opportunities. The completion of the transaction with MSL is a useful step in the development of our specialist laboratory activities. Discussions with other businesses in all three segments of the Group are progressing positively."
19 September 2008
RPS is an international consultancy providing advice upon the development of natural resources, land and property, the management of the environment and the health and safety of people. We have offices in the UK, Ireland, the Netherlands, North America, Eastern Europe, South East Asia and Australia and undertake projects in many other parts of the world. The Group is a constituent of both the FTSE 250 and FTSE 4 Good indices.