The principal shareholder in Dublin planning consultancy McHugh Consultants, Mr Bernard McHugh, will net nearly £5.6 million (€7 million) after the firm's sale to RPS, Europe's largest environmental consultancy.
Mr McHugh holds 99 of the firm's 100 shares. Mr Fergal McHugh, with an address in California, holds the remaining share.
RPS will pay £3.34 million in cash up front with deferred cash payments totalling £2.26 million payable over the next three years, subject to certain operational conditions being fulfilled. RPS will also assume about £1.15 million debt. McHugh Consultants is one of Ireland's leading independent development planning consultancies. It operates from central Dublin and provides advice to public sector authorities in the preparation of their development strategies and statutory plans. It also advises private sector clients across Ireland. It also takes on an advocacy role for certain clients on planning matters.
It has been involved in several high-profile developments, carrying out environmental impact studies (EIS) on the major high-rise scheme for George's Quay in Dublin and the Monument of Light, dubbed "the spike" on Dublin's O'Connell Street. It also advised President McAleese and her family on their response to an appeal by An Taisce against Roscommon County Council's decision to grant them permission for a proposed two-storey house overlooking Lough Eidin, west of Carrick-on-Shannon. Bord Pleanβla upheld An Taisce's appeal.
For the year to July 31st, 2001, McHugh had a turnover of £3.01 million, profit before tax of £880,000 and profit after tax of £690,000. At July 31st, net assets were £730,000.
RPS said the acquisition advanced its strategy, extending the group's planning capability into Ireland, while also strengthening its business here. Following the takeover, McHugh will retain its Dublin city centre presence and will be integrated with RPS Environmental Sciences, which provides environmental impact assessment services to a similar client base from offices in Belfast, Cork and Dublin.
"The acquisition of McHugh is an important step forward for both our business in Ireland and our development planning activities," said Mr Alan Hearne, RPS chief executive. "McHugh is a successful, high-profile, high-margin business based in Dublin. We ... expect it to assist significantly in the development of our Irish business in 2002."
RPS will dispose of 78 per cent of LabDIRECT, the e-commerce business it set up in 2000, to Emulous, the firm which has acted as manager of LabDIRECT.
