RPS makes Paras its latest addition
Article Date: Oct 10 2008An Oxfordshire-based natural resources consultancy has completed its second acquisition in as many months after buying a rival firm that lists BP and ConocoPhillips among its clients.
RPS, which also specialises in land/property and built environment advice, has bought Paras, a provider of strategic guidance to the oil and gas industry.
If all agreed conditions are met RPS will have to pay £6.4 million for the business. On completion £4.7 million was paid, comprising £3.5 million in cash and more than 500,000 shares. The balance will be paid on the first, second and third anniversaries of the deal if targets are achieved.
RPS chief executive Alan Hearne said the deal is part of an on-going strategy. “RPS remains committed to expanding our fast growing international energy business with further acquisitions. The group’s balance sheet remains strong and further acquisitions are under negotiation.”
This follows an agreement to add specialist laboratory services provider MSL to its business in September. Paras was sold by a group of individual shareholders, of which three remain with the business post-completion.
RPS has offices in the UK, Ireland, the Netherlands, North America, Eastern Europe, South East Asia and Australia.
London-based Paras has been helping energy companies with their exploration investment strategies since 1993. In the year to November 2008, it recorded a £3 million turnover, making a £1 million pre-tax profit. At the same date, its assets were valued at £1.2 million, which included £900,000 in cash.
