WSP today announced the acquisition of a leading US consultant, Environmental Strategies Consulting, which will add to its expertise in the environmental sector.
ESC is an environmental consulting and remediation business based in Reston, Virginia with 10 major offices in the United States employing over 120 staff. ESC has strong brand recognition amongst a broad range of both international and domestic clients. ESC is owned by a subsidiary of Quanta Capital Holdings Ltd ('Quanta'). Quanta operates its Lloyd's syndicate in London and is in the process of running off its remaining insurance and reinsurance business lines. WSP has agreed to acquire ESC from Quanta on the following terms:*Total cash consideration payable to Quanta at completion of $10m (£5.3m); and*The forgiveness of the inter company account between ESC and Quanta up to $1m (£0.5m); Net Tangible assets of ESC at completion are estimated to amount to $5m (£2.6m), and the Company will be acquired both debt and cash free. Adjusted revenue and profit before tax of ESC for the three years to December 2005 have averaged $33m (£17.4m) and $2.5m (£1.3m) respectively.In addition, WSP have secured the long term commitment of the existing four principal members of the ESC Management Team, who have each been with the Company for more than 10 years.ESC provides WSP with the critical mass to expand its Environmental activities in the United States and with ESC's strength in the property sector WSP sees considerable opportunities for cross selling services. In addition, the international nature of WSP's existing Environmental business will provide ESC with a worldwide footprint to provide their clients with global coverage.