Acquisition

RNS Number : 3594Z

Spice PLC

18 July 2008

 



18 July 2008

Spice plc

Acquisition of British Power International Limited

Spice plc ("Spice" or "the Group"), the provider of Total Utility Support Services, is pleased to announce the completion of the acquisition of British Power International Limited (BPI). 

BPI provides specialist engineering and consultancy services to network operators, generators, regulators, governments and funding agencies. The range of services provided includes consulting services to industry regulators, advisory services to potential investors, operational support to utility operators and engineering design services to network operators. 

BPI has been acquired for initial net cash consideration of £7.5 million. Additional contingent cash consideration of up to £1.35 million will become payable depending on the results of BPI for the period to 30 June 2009. The initial net cash consideration is subject to adjustment based on the net asset and cash position at completion. The total consideration payable (including the initial net cash consideration, the additional contingent cash consideration and the net asset and cash adjustment) is capped at £10.25 million. The initial net cash consideration of £7.5 million represents a multiple of 6.7 times adjusted 2007 operating profits.

BPI was formed via a management buy out in 1999 which was led by Bill Slegg, who will remain with the business following acquisition. The business was established in 1978 within the state owned energy sector until privatisation in 1990. BPI is located in Colchester and employs 70 electrical engineers.

The business is split into three service islands:

• UK Consultancy providing advisory and auditing services to the UK government, OFGEM, DTI, Distribution Network Operators, private network operators, development agencies and banks;

• Engineering Project Management providing network planning, design, construction and commissioning services on distribution as well as transmission networks to UK Distribution Network Operators, private network operators, development agencies and network users; and 

• International Consultancy providing advisory services to international funding agencies, governments and regulators as well as developers and operators of generating plants and networks.

The audited financial statements of BPI for the year ended 31 December 2007 show turnover of £5.9 million and adjusted operating profits of £1.1 million. Net assets at 31 December 2007 were £3.1 million.

Simon Rigby, Chief Executive Officer of Spice, commented:

"BPI has 30 years of experience of working with asset owners and regulators. The acquisition of BPI significantly strengthens our Consultancy business and reinforces our position as one of the leading players in the UK electricity sector. BPI gives us a significantly enhanced capability in the area of higher value consultancy services adding highly skilled and scarce resource, whilst continuing to build on our cradle to grave UK business delivery model. Around 20% of BPI's revenue is derived from foreign governments, regulators and asset owners internationally."

…Ends…

For further information, please contact:

Spice plc  - Tel: [phone]

Simon Rigby, Chief Executive Officer

Oliver Lightowlers, Group Finance Director

Andrew Catchpole, Group Strategy and Development Director

Financial Dynamics  - Tel: [phone]

Billy Clegg

Caroline Stewart  

KBC Peel Hunt -  Tel: [phone]

Julian Blunt

NOTES TO EDITORS

Spice plc

Spice is a total utility infrastructure support services business. The Group's operations were founded in 1996 and have their origins in the electricity industry, though the range of activities has since been expanded into the water sector, niche telecommunications services, statutory gas inspections, energy management and facilities management. Spice's businesses have a common theme of delivering and co-ordinating infrastructure services to customers, and the technological element within the product mix has been built up significantly over the course of the last three years.

 

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