Acquisition of Land Management Unit Trust
28 March 2008
RPS announces the acquisition of Koltasz Smith, a consultancy based in Perth, Western Australia providing town planning and urban design advice to the land development industry.
Koltasz Smith was established in 1984 as a partnership, with its ownership being transferred to a Trust the following year. It operates from two offices in Western Australia, providing town planning and urban design advice to landowners and developers. This is a buoyant market in Western Australia and has encouraging prospects.
Koltasz Smith will be integrated with RPS's existing businesses in Perth. Its results will be recorded in the Planning and Development segment of the Group results. We expect strong synergies to develop with the part of our existing business which provides environmental assessment and land quality advice to similar blue chip clients in Western Australia.
The business was purchased from the founder and managing director and five of his colleagues who together are the Unit holders of the Trust. They have all signed service agreements and will be remaining with RPS for at least two years. The other 26 Koltasz Smith staff have also joined RPS and are now engaged in the combined business going forward.
In the year ended 30 June 2007, Koltasz Smith had revenues of A$ 4.8 million (£2.2 million and profit before tax of A$ 1.0 million (£ 0.5 million). The assets and liabilities of the Koltasz Smith operating business are owned by the Unit holders.
RPS is acquiring the assets necessary to ensure the continued operation of Koltasz Smith, along with certain liabilities, for a maximum total consideration of A$ 6.5 million (£3.0 million) all of which will be paid in cash. A$ 3.9 million (£1.8 million) was paid at completion. Subject to certain operational conditions being met, the balance of the consideration A$ 2.6 million (£1.2 million) will be paid, in two equal parts, on 28 March in 2009 and 2010.
Brook Land, Chairman of RPS commented:
"Our business in Australia is a great success. It demonstrates how we can build the full range of RPS services around an offering that originally focussed exclusively on our Energy activities. Koltasz Smith is one of the leading planning consultancies in Western Australia and further extends the services we offer in that market. We anticipate continuing to build all our services in Australia on a national basis."
28 March 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|
|Justine Warren||Tel: 020 7457 2020|