RPS moves into potash business

1st Sep 2010 07:01

RPS Group is back on the acquisition trail, buying up a Canadian oil and gas consultancy for C$13.9m (£8.5m).The acquisitive environmental consultancy is paying cash for Boyd Exploration Consultants, a company that has recently expanded from its core oil and gas markets into the mining sector, especially the potash industry.Boyd also provides environmental advice to its clients through a wholly owned subsidiary, Wildside. Together the businesses employ 26 staff and use a wide range of sub-consultants. In the year ended 31 March 2010 Boyd had revenues of C$12.6m (£7.7m) and profit before tax of C$2.88m (£1.76m), after adjustment for non-recurring items. Net assets at 31 March 2010 were C$4.3m (£2.6m), after adjusting for assets excluded from the transaction. On a similar basis, gross assets at 31 March 2010 were C$11.6m (£7.0m).Consideration paid at completion was C$7.30m (£4.46m). Subject to certain operational conditions being met, three further sums of C$2.37m (£1.44m), C$2.39m (£1.46m) and C$1.81m (£1.10m) will be paid on the first three anniversaries of the transaction. The nine vendors of the business include six directors and staff of Boyd, all of whom are remaining with RPS."This builds on our acquisition earlier this year of Aquaterra, which enabled us to enter the mining sector in Australia and internationally. We are continuing to look for further opportunities to increase the scale of our activities in this growing sector," said Alan Hearne, chief executive of RPS.