RPS to acquire consultancy firm CgMs for up to £13m

11th Aug 2014 08:14

RPS has announced its plans to acquire planning and development services consultancy CgMs Holdings for up to £13m. FTSE 250-listed RPS believes the purchase, which includes CgMs's subsidiary, CgMs limited, will offer "excellent opportunities" within the historic buildings and heritage assets markets, particularly as the planning and development sector recovers from the recession. Chief executive Alan Hearne said: "CgMs has an excellent reputation and track record. Its skills will complement the services RPS currently provides to the property development sector. Following a period of integration we anticipate CgMs will make a significant contribution to our BNE: Europe business in 2015 and beyond."In the year ended 30 June, CgMs generated pre-tax profit of £2.1m on revenue of £16.7m, while net assets totalled £2.3m. Six of the the firm's seven vendors will remain with RPS, with the other retiring shortly after completion of the transaction. The vendors will be paid a consideration of £7m at completion, while a further £6m will be paid in two tranches on the first and second anniversaries of the deal, if certain operational conditions are met. NR