Spice is right as Leeds utility firm snaps up British Power International

LEEDS-based utility support services firm Spice today announced the acquisition of British Power International Ltd (BPI) in an initial £7.5m cash deal.

BPI provides specialist engineering and consultancy services to network operators, generators, regulators, governments and funding agencies.

These include consulting services to industry regulators, advisory services to potential investors, operational support to utility operators and engineering design services to network operators.

As well as the headline 7.5m cost, an additional contingent cash consideration of up to 1.35m will become payable depending on the results of BPI for the period to June 30, 2009.

Spice added that the initial net cash consideration was subject to adjustment based on the net asset and cash position of BPI at completion and the total consideration payable was capped at 10.25m.

Colchester-based BPI, which employs 70 electrical engineers, was formed via a management buy out in 1999.

The business was established in 1978 within the state owned energy sector until privatisation in 1990.

Audited financial statements of BPI for the year ended December 31, 2007, show turnover of 5.9m and adjusted operating profits of 1.1m.

Net assets at December 31, 2007, were 3.1m.

Simon Rigby, chief executive officer of Spice, said: "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 per cent of BPI's revenue is derived from foreign governments, regulators and asset owners internationally.

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