US firm tables 拢636m bid for RPS, trumping summer offer made by Canadian rival
Tetra Tech is set to continue its raid on UK consultants with the firm agreeing to buy RPS Group for more than 拢600m 鈥� trumping a bid from WSP made over the summer.
The California-based business, which was set up in 1966 and has been listed on the US Nasdaq exchange for over 30 years, bought WYG for 拢54m three years ago and Hoare Lea last summer for an undisclosed sum.
In a Stock Exchange update this morning, RPS, which is based in Oxford and has 5,000 employees, said Tetra Tech had made a 鈥渟uperior proposal鈥� for the business adding: 鈥淩PS Directors have withdrawn their recommendation of the WSP Offer. The RPS Directors鈥� unanimously support and intend to take the relevant actions to implement the [Tetra Tech] Acquisition.鈥�
In August, WSP, which has told investors it is mulling what to do next raising the prospect of a bidding war, said it had agreed to buy RPS for 拢591m 鈥� but the Tetra Tech bid values the firm at 拢636m.
RPS, which employs consultants, designers, planners, engineers, and technical specialists, was set up in 1970 as Rural Planning Services and was listed 17 years later. It operates across a range of sectors providing specialist services to government and the private sector.
In its last set of results, RPS improved fee revenues 4% last year to 拢476m and returned to the black with a pre-tax profit of 拢12.4m from a 拢31.3m loss last time.
In its latest report and accounts, Tetra Tech said it splashed out $151.7m (拢125m) on four acquisitions last year 鈥� including the Hoare Lea deal. It said Tetra Tech鈥檚 group turnover had improved 7% to $3.2bn (拢2.6bn) with profit up 16% to $279m (拢231m).
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