Tetra Tech acquires environmental consultancy RPS Group

Posted by Daniel Gleeson on September 26, 2022

Tetra Tech Inc appears to have won the battle for environmental and social engagement consultancy specialist RPS Group plc after the two companies’ boards agreed terms on a recommended cash takeover whereby a subsidiary of Tetra Tech will acquire RPS.

The all-cash acquisition price of £2.22/share ($2.39/share) outweighs the price of £2.06/share offered by WSP in August and also represents an increase of 109.5 % to volume weighted average price of £1.06/share for the 90s. -day period ending 8 August 2022.

Tetra Tech and RPS combined will represent a leading international consulting, engineering and program management company, and will leave RPS well positioned to provide a strong platform to drive long-term growth within the broader group. said Tetra Tech. The acquisition is also expected to be 1-10% accretive to Tetra Tech’s adjusted earnings per share after realizing the full benefit of approximately £21 million of cost and integration synergies in Tetra Tech.

On August 8, 2022, the Boards of Directors of WSP Global, WSP Holdings and RPS announced that they had reached agreement on the terms of a recommended cash offer under which WSP Holdings, or another subsidiary in wholly owned by WSP Global, would acquire all of the issued and to be issued share capital of RPS. However, Tetra Tech’s new proposal has now been deemed superior by RPS directors and advisors.

As of the date of this announcement, Tetra Tech has received irrevocable undertakings and letters of intent representing approximately 27.53% of the issued share capital of RPS.

Tetra Tech is a global consulting and engineering company, providing high-end services for projects around the world in multiple sectors, including mining.

RPS, on the other hand, claims that it solves the problems that matter in a complex, urbanized and resource-poor world and focuses its expertise on the parts of the project life cycle that have the greatest impact on project results, with a strong sustainability program.

John Douglas, Managing Director of RPS, said, “Joining Tetra Tech represents a very attractive combination of two industry-leading companies for our customers and provides an ideal opportunity for our employees to realize RPS’s goals of contributing meaningfully. to the toughest challenges in the world. problems of energy transformation and water management in the world. I am very excited about the future of our combined company and the benefits for our employees and customers.

Dan Batrack, President and CEO of Tetra Tech Inc, added: “The RPS Group advances our long-term strategy to strengthen our position as the world’s leading premium consulting firm in water, environment, sustainable infrastructure and energy transformation. We invite RPS Group associates to join us and collectively leverage our long-term client relationships and project experience. As a global consulting firm committed to high-end solutions, we can offer our extended team of associates even greater professional opportunities.

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