Consulting and engineering services provider Tetra Tech has outbid WSP in an acquisition battle for RPS Group.
The RPS board last month approved a £625.9 million takeover bid by Canada-based WSP, subject to shareholders agreeing to the deal.
However, Tetra Tech has now offered a higher bid of £636million. This constitutes an all-cash acquisition of the group for 222 pence per share against WSP’s offer price of 206 pence per share.
Accordingly, the directors of RPS withdrew their recommendation of the WSP offer and instead seek shareholder support for the Tetra Tech offer.
They intend to postpone the court meeting and general meeting that were to be held in connection with the WSP offer and will instead hold shareholder meetings to push through the deal with Tetra Tech in due course. .
The acquisition by Tetra Tech was unanimously recommended by the board of RPS Group, which is listed on the London Stock Exchange.
President and CEO of Tetra Tech said, “The RPS Group is advancing our long-term strategy to strengthen our position as the world’s leading premium consulting and engineering company focused on water, the environment , sustainable infrastructure and energy transformation.
RPS Managing Director, John Douglas, commented: “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 achieve RPS’s goals of making a significant contribution to the world’s most difficult energy problems. transformation and management of water in the world.
The acquisition will be implemented by way of a court-sanctioned plan of arrangement under the UK Companies Act 2006. The plan will allow Tetra Tech to indirectly own 100% of the share capital of RPS Group.
Subject to approval of the plan by RPS Group shareholders, the acquisition is expected to be completed by the end of 2022.
Founded in 1970 and built on a heritage of environmental and social commitment, the RPS group employs 5,000 people in Europe, the United Kingdom, Asia-Pacific and North America. It provides solutions particularly in energy transformation, water and program management for government and commercial clients.
Tetra Tech is a leading global consulting firm in the field of water and environmental management. Its 21,000 associates are technical experts capable of carrying out more than 70,000 projects per year worldwide.
The combined 26,000 associates of RPS Group and Tetra Tech will establish a leading global consultancy in water, environment, sustainable infrastructure and energy transformation.