RPS has acquired Ichron Limited, a UK based consultancy providing geological and training services to the international oil and gas sector, for a total consideration of £12.5 million.
Founded in 1995, Ichron has its offices and a geological sample preparation and analysis laboratory in Cheshire, UK. The company, comprising 46 permanent staff and additional part time specialist associates, works primarily on projects in Europe, Africa and the Middle East. Its specialist services include reservoir geology, biostratigraphy and chemical stratigraphy.
Ichron provides RPS with further capability in the Group’s established and growing oil and gas consultancy markets. The services provided by Ichron are complementary with existing RPS international capabilities.
The four vendors of the business, together with all employees, are remaining with RPS.
In the year ended 31 December 2012, Ichron had revenues of £6.3 million and profit before tax of £2.1 million, after adjustment for non-recurring items. Net assets at 31 December 2012 were £1.1 million. Gross assets at 31 December 2012 were £2.2 million.
RPS is acquiring the entire share capital of Ichron for a maximum total consideration of £12.5 million, all payable in cash. Consideration paid to the vendors at completion was £6.6 million. Subject to certain operational conditions being met, two further sums of £2.6 million, will be paid to the vendors on the first and second anniversaries of the transaction. Following completion and on finalisation of the closing balance sheet, a further sum, estimated at £0.7 million, will also be payable to the vendors.
Alan Hearne, Chief Executive of RPS, said, “Ichron has an excellent reputation and track record. Its skills will add to our existing capabilities in growing specialist areas and provide us with a platform for further growth.
UK, Abingdon, Oxfordshire & Northwich, Cheshire
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