Spice makes BPI acquisition
UTILITY support business Spice continued on the acquisition trail today with the purchase of British Power International (BPI) which provides consultancy services to the power industry.
Spice will pay up to £10.5m for the Essex-based business which offers specialist engineering and consultancy services to network
operators, generators, regulators, governments and funding agencies.
The Colchester company’s range of services includes consulting services to industry regulators, advisory services to potential investors, operational support to utility operators and engineering design services to network operators.
BPI was formed via a management buyout in 1999 led by Bill Slegg who is staying with the business following its acquisition by Spice.
The firm employs 70 electrical engineers and was originally formed in 1978 within the state-owned energy sector and was privatised in 1990.
It made operating profits of £1.1m on turnover of £5.9m in the year to December 31, 2007 and had net assets of £3.1m.
Leeds-based Spice, which made a dozen acquisitions last year, will pay an initial £7.5m for BPI, which is 6.7 times the company’s adjusted operating profits for 2007.
It will pay another £1.35m depending on the firm’s results in the year to June 30, 2009 and could pay up to £10.25m for the business depending on the net asset and cash position on completion.
Simon Rigby, chief executive 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.”
