RPS Group PLC, an energy and natural resources consultancy, has acquired 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 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.
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.
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.
Alan Hearne, Chief Executive of RPS, said, “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.”
UK, Abingdon, Oxforshire & Canada, Calgary, AB