Founded 12 years ago Aquaterra has about 90 staff and operates primarily in Australia, from its headquarters in Perth and offices in Adelaide and Sydney. It is also active in the UK serving similar markets as our existing water resources business and will complement its activities. In Australia Aquaterra has a market leading position providing support to the natural resources and mining sectors, which face increasingly challenging water resource and environmental issues. Some of Aquaterra’s clients undertake projects internationally; this has enabled Aquaterra to broaden its geographic base, a trend which RPS can help develop further.
In the year ended 31 March 2010 Aquaterra had revenues of A$18.2 million (£10.5 million) and profit before tax of A$2.49 million (£1.44 million). Net assets at 31 March 2010 were A$4.9 million (£2.8 million).
RPS is acquiring the entire share capital of Aquaterra for a maximum total consideration of A$13.7 million (£7.9 million), all payable in cash. Consideration paid at completion was A$7.0 million (£4.1 million). Subject to certain operational conditions being met, two further sums of A$3.5 million (£2.0 million) and A$3.2 million (£1.8 million) will be paid on the first and second anniversaries of the transaction. The vendors of the business are its two executive directors and 20 other staff, all of whom are remaining with RPS.
Alan Hearne, Chief Executive of RPS, commented:
“The acquisition of Aquaterra further develops our market leading environmental business in Australia. Operating where water resource and environmental issues overlap with the exploration and production of natural resources means it is well positioned at the forefront of issues of strategic importance to the Australian economy. RPS will provide it with further opportunities in both Australia and internationally.”