Kraan was established in 1979 and employs 65 staff in Rotterdam. It provides consultancy services which enable a wide range of companies and government agencies to manage their property occupation efficiently, cost effectively and by reducing energy use with the consequence of lessening their carbon footprint.
The business will be integrated with RPS's existing business in the Netherlands. A number of RPS's current services are commissioned by Kraan Consulting and our mutual clients will have access to a more comprehensive service as a result of this acquisition. It is anticipated that further services can be developed together and the operation expanded geographically throughout Holland. The executives of Kraan and all staff have joined RPS and will be engaged in the combined business going forward.
In the year ended 31 December 2007, Kraan had revenues of Euro 7.1 million (£5.3 million) and adjusted profit before tax of Euro 1.1 million (£0.82 million) (having normalised certain vendor costs). Net assets at 31 December 2007 were Euro 1.1 million (£0.82 million).
RPS is acquiring the entire share capital of Kraan, from four individual owners, for a maximum total cash consideration of Euro 6.5 million (£4.8 million). Euro 4.0 million (£3.0 million) was paid at completion. Subject to certain operational requirements being met, a further Euro 1.2 million (£0.9 million) will be paid on 1 March 2009 and Euro 1.3 million (£0.9 million) will be paid on 1 March 2010.
Brook Land, Chairman of RPS commented:
"Our Dutch business traded well in 2007 and has encouraging prospects for 2008. The RPS board believes now is a good time to invest in what is a healthy and expanding market.
"Our acquisition pipeline remains strong and the RPS board anticipates that more acquisitions will be completed in the coming months, further assisting the Group's future growth."
7 February 2008
RPS is an international consultancy providing advice upon the development of natural resources, land and property, the management of the natural and built environments and the health and safety of people. We trade in the UK, Ireland, the Netherlands, Poland, North America, South East Asia and Australia and undertake projects in many other parts of the world.
|RPS Group plc|
|Dr Alan Hearne, Chief Executive||Tel: 01235 863 206|
|Gary Young, Group Finance Director|
|Tel: 020 7457 2020|