RPS, the listed UK environmental services specialist, has announced the acquisition of the Scotia Group, a Texas-based consultancy providing advice to the oil and gas industry. 

Scotia was established in 1981 and provides consultancy services to the oil and gas industry in respect of exploration activities. It is based in Houston and Dallas, Texas, undertaking projects on an international basis. Scotia's skills fit well with the range of services that RPS currently offers and gives RPS scope to expand their client base and geographical reach, particularly into South America. 

The Scotia management team and staff are remaining with RPS and the business will be integrated with RPS's existing business in the US. There are 20 vendors all employed by or working with Scotia. The Scotia results will be included within RPS's energy business segment. 

In the year ended 31 December 2006 Scotia had revenues of $8.5m (£4.2m) and profit before tax of $1.6m (£0.8m). Net assets at 31 December 2006 were $1.7m (£0.8m). 

RPS is acquiring the equity of Scotia for a maximum total consideration of $5.9m (£2.9m). $2.95m (£1.5m) was paid in cash at completion. A further $1.5m (£0.7m) in cash will be paid on the first and second anniversaries of the transaction, subject to certain operational conditions being met. 

Alan Hearne, Chief Executive of RPS commented: The acquisition of Scotia, a highly respected international business, enables us to expand further the range of services we offer our oil and gas clients in the US. Scotia's particular experience in respect of projects in South America extends our knowledge base in a timely fashion. 

Our Energy business continues to trade well, as does the Group as a whole. Further acquisitions in the US and elsewhere are being actively considered.