RPS, a consultancy specialising in advising the natural resources sector, has bought RWG, a provider of engineering advice to blue chips in the public and private sectors.
RPS, a consultancy specialising in advising the natural resources sector, has bought RWG, a provider of engineering advice to blue chips in the public and private sectors.
The acquirer, which also supports the land, property, environment and health and safety markets, could pay up to £10.1 million depending on performance.
On completion £5.2 million was paid in cash as well as £1.7 million in shares. The balance is expected to be paid in cash in three equal instalments by March 2011.
The addition of RWG accelerates the development of RPS’ energy efficiency operation with the acquired business becoming part of its Planning and Development division.
RPS chairman Brook Land said Planning and Development is an important part of its business and the deal extends its skills into new areas. “The acquisition of RWG will position us strategically in providing advice to our clients on achieving energy efficiency at all stages in the planning and development of new buildings.”
RWG was sold by its 11 partners, nine of which remain with the business post-completion with two retiring.
Land added that this will not be the last acquisition he intends to make. “Our pipeline remains strong and the board anticipates that more deals will be completed shortly, further underpinning the group’s growth.”
RPS manages projects all over the world from its offices in the UK, Ireland, the Netherlands, Poland, North America, South East Asia and Australia.
RWG was established in 1934 to provide engineering consultancy services to help government agencies and private companies construct large buildings. Today it also advises on reducing energy use, providing advice to the health, education and retail sectors, in addition to being active in several other sectors, such as aviation.
The group employs 130 staff in offices in Newcastle, Leeds, Birmingham, Manchester and Cardiff. In the year to May 2007, it had revenues of £12.1 million and a £1.48 million adjusted pre-tax profit.
