Global performance improvement solutions provider General Physics Corporation, the operating subsidiary of GP Strategies Corporation, announced today that it has acquired Performance Consulting Services, Inc. (PCS), a company specializing in performance engineering support, training, combustion optimization, implementation of smart equipment condition monitoring systems and testing services for power plants.
PCS, based in Montrose, Colorado, generated approximately US$4.5 million of revenue in 2007 and has a strong industry reputation for assisting its customers in optimizing plant performance and resource usage and reducing overall operating costs. The purchase price consists of US$1.0 million paid at closing out of GP's cash on hand and US$1.0 million of guaranteed future payments. In addition, GP may be required to pay up to an additional US$2.3 million, contingent upon GP's energy group achieving certain revenue targets (as defined in the purchase agreement) during the two twelve-month periods following completion of the acquisition.
The acquisition of PCS is a part of GP’s global strategy to strengthen and expand service offerings to clients in the process and energy sector, markets served by GP for over thirty years. On a combined basis, GP and PCS generated over US$34 million of revenue in 2007 from process and energy industry clients.
The combination of GP's and PCS' current service offerings for process and energy customers gives GP a strong base to expand upon worldwide. More than 500 units of GP's own proprietary plant monitoring system, EtaPRO, have been installed in over 25 countries, including ten units recently installed in the Asia Pacific region.
In addition, GP provides e-Learning training through its proprietary GPiLearn to over 24,000 power plant personnel for operations and maintenance training in the United States and in over 15 countries worldwide. GP also continues to be a leading provider of training support to the US nuclear power industry.
Scott N Greenberg, Chief Executive Officer of GP Strategies, stated: "With the acquisition of PCS, GP is expanding its depth of services, products and capabilities in the energy sector. We are well-positioned to participate in the surging demand for power industry expertise due to worldwide demand for energy."
This acquisition is consistent with GP's strategy of being a full-service provider of custom learning solutions and performance improvement products to Fortune 500, government, and other commercial customers.
Twitter