Acquisition of PEICE
16 January 2013
RPS announces the acquisition of Petroleum Institute for Continuing Education ("PEICE"), a Canadian based business providing geoscience and engineering training to the oil and gas industry, for a maximum consideration of C$11.7 million (£7.4 million).
PEICE has been providing high quality training to the oil and gas industry for 12 years. During 2012 it delivered over 200 courses, primarily in Canada and the US. The courses cater for a wide range of participants including recent graduates and technical and administrative support staff, as well as senior energy company staff. Course formats include open courses, in-house at client facilities and on-line delivery.
The founder and joint owner (with his wife) of the business will be remaining with RPS after the transaction, along with all current PEICE staff. They will work with RPS' existing energy training teams in the UK and US to extend the range of courses offered and the geographical reach of the business.
In the year ended 31 August 2012 PEICE had revenues of C$7.4 million (£4.7 million) and profit before tax of C$2.0 million (£1.3 million), after adjustment for non-recurring items. Net assets at 31 August 2012 were C$0.4 million (£0.25 million). On the same basis, gross assets at 31 December 2012 were C$1.0 million (£0.6 million).
RPS is acquiring the entire share capital of PEICE for a maximum total consideration of C$11.7 million (£7.4 million), all payable in cash. Consideration paid at completion was C$5.7 million (£3.6 million). Subject to certain operational conditions being met, two further sums of C$3 million (£1.9 million) will be paid on the first two anniversaries of the transaction.
Alan Hearne, Chief Executive of RPS, commented:
"The acquisition of PEICE extends the geographical reach and capability of our existing energy training business. This remains a growth market, as technical training continues to be important for most of our E&P clients."
16 January 2013
|RPS Group plc|
|Dr Alan Hearne, Chief Executive||Tel: 01235 863 206|
|Gary Young, Group Finance Director|
|Justine Warren /Matthew Smallwood||Tel: 020 7457 2020|
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 have offices in the UK, Ireland, the Netherlands, Canada, USA and Australia/Asia Pacific and undertake projects in many other parts of the world. The Group is a constituent of both the FTSE 250 and FTSE 4 Good Indices.