Elkridge, MD. March 4, 2008. Global performance improvement solutions provider General Physics Corporation (GP), the operating subsidiary of GP Strategies Corporation (NYSE: GPX), 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 $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 $1.0 million paid at closing out of GP’s cash on hand and $1.0 million of guaranteed future payments. In addition, GP may be required to pay up to an additional $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 $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 10 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 U.S. 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.
About GP
GP is the principal operating subsidiary of GP Strategies Corporation (NYSE: GPX). GP is a global performance improvement solutions provider of sales and technical training and e-Learning solutions, management consulting and engineering services. GP’s solutions improve the effectiveness of organizations by delivering innovative and superior training, consulting and business improvement services, customized to meet the specific needs of its clients. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information may be found at www.gpworldwide.com.
We make statements in this press release that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipates,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts:
Scott N. Greenberg
Chief Executive Officer
(410) 379-3640
Sharon Esposito-Mayer
Chief Financial Officer
(410) 379-3636
Ann M. Blank
Investor Relations
(410) 379-3725