Tetra Tech (TTEK) to Acquire RPS Group, Expand Globally
Tetra Tech TTEK has entered into an agreement to acquire RPS Group plc, an established technology enabled consultancy firm, for 222 pence per share.
The acquisition will enhance Tetra Tech’s consultancy in water, environment and sustainable infrastructure. It will expand TTEK’s water practice in the United Kingdom and strengthen its foothold in renewable energy and environmental management.
Through the acquisition, TTEK will be able to expand its presence in the United Kingdom, European Union and Australia. The combined entity will aim at addressing critical issues such as climate change, resiliency and energy transformation.
Tetra Tech, Inc. Price
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Subject to regulatory approvals, the transaction is expected to be completed by the end of 2022. The acquisition is expected to be accretive to Tetra Tech’s adjusted earnings per share in the mid to high teen percentage range.
The company expects cost synergies of £21 million from the acquisition. However, it expects to incur a charge of £16 million within the first twelve months of closing of the transaction.
Regarding the acquisition deal, Dan Batrack, Tetra Tech’s chairman and CEO, said, "The RPS Group advances our long-term strategy to enhance our position as the premier global high-end consulting and engineering firm focused on water, environment, sustainable infrastructure, and energy transformation."
Zacks Rank & Key Picks
Tetra Tech currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Lindsay Corporation LNN currently carries a Zacks Rank #2 (Buy). LNN pulled off a trailing four-quarter earnings surprise of 25.6%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Lindsay has an estimated earnings growth rate of 45% for the current year. Shares of the company have rallied 15.4% in the past three months.
Valmont Industries VMI presently carries a Zacks Rank #2. VMI pulled off a trailing four-quarter earnings surprise of 13.7%, on average.
Valmont Industries has an estimated earnings growth rate of 26.9% for the current year. Shares of the company have jumped 11.8% in the past three months.
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