RPS acquires UK consultancy firm - UPDATE

26th Sep 2013 07:00

FTSE 250 group RPS has acquired IChron, a UK-based consultancy providing geological and training services to the international oil and gas sector, to further its capability in its established and growing consultancy markets. RPS is acquiring the entire share capital of Ichron for a maximum total consideration of £12.5m, all payable in cash. The consideration paid to the vendors at completion was £6.6m, with further payments to be made if certain future conditions are met.Following completion and on finalisation of the closing balance sheet, a further sum, estimated at £0.7m, will also be payable to the vendors.Alan Hearne, Chief Executive of RPS, said: "Ichron has an excellent reputation and track record. Its skills will add to our existing capabilities in growing specialist areas and provide us with a platform for further growth. "Other acquisition opportunities we are working on are also progressing positively."The company, which is made up of 46 permanent staff and additional part-time specialist associates, works primarily on projects in Europe, Africa and the Middle East. Its specialist services include reservoir geology, biostratigraphy and chemical stratigraphy. The four vendors of the business, together with all employees, are remaining with RPS. In the year ended December 31st 2012, Ichron had revenues of £6.3m and profit before tax of £2.1m, after adjustment for non-recurring items. Net assets at that time were £1.1m, while gross assets totalled £2.2m. NR