The RPMGlobal Holdings Ltd (ASX: RUL) share price is one to watch after acquiring an environmental social and governance (ESG) services business.
RPMGlobal acquires ESG company
RPMGlobal announced that it has acquired Perth based ESG business Blueprint Environmental Strategies Pty Ltd (Blueprint).
The transaction will cost RPMGlobal around $3.5 million which include a cash payment of $2 million. The cash portion will be funded by its existing cash reserves.
The balance of $1.5 million will be made up of $1 million worth of RPMGlobal shares and a working capital adjustment of around $500,000 to be paid 90 days after the completion.
The acquisition is expected to be completed on 30 September 2021.
RPMGlobal’s strategy
The company said that this acquisition is an important step in the strategy to grow its mining focused ESG team. It expects to be able to meet the increasing demand for ESG related services and technology solutions from the mining industry.
Management said that its ESG related work has grown “materially” since it established an ESG division and acquired Brisbane based ESG company Nitro Solutions in July 2021.
Final thoughts on the RPMGlobal share price
This acquisition doesn’t seem to have had much effect on the RPMGlobal share price. That might not be surprising as it is only a small transaction of $3.5 million.
The share price is currently down less than 1% at the time of writing, however the whole ASX has been having a bumpy time over the last few days.
It sounds like RPMGlobal has the potential to expand this new business and capture a growing market in ESG demand from the mining industry.
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