London-based environmental, engineering and strategic consulting company Ricardo is set to be acquired by WSP Global for around £281m.
The Canada-headquartered professional services firm has over 72,000 professionals working across more than 50 countries and says it recognises the value of Ricardo’s automotive and industrial and performance products businesses.
The deal means that another company will delist from the London Stock Exchange, as the historic company founded over 100 years ago sees its time on the market come to an end.
It will also see Ricardo shareholders receive 430 pence in cash per share – a 28.4 per cent premium to its closing price on June 10th.
The news comes just months after Science Group, the firm’s second largest shareholder with a 20 per cent stake, called for an annual general meeting to oust Mark Clare, chairman of Ricardo.
Science Group labelled Clare’s leadership as ‘ineffective’, and cited the then-forecasted £5.1m debt as a reason for the statement.
On the acquisition, Clare said: “Ricardo has made significant progress with its strategy to transform the business into a world leading environmental and energy transition consultancy, with its prospects underpinned by global mega trends supportive of long-term growth.
“However, while good progress has been made, there are further steps required to complete the transformation which bring some execution risks against the background of short-term market challenges and the uncertain geopolitical and macroeconomic backdrop.
“Against this background, WSP has made a compelling offer which represents a highly attractive premium to recent average trading levels and provides certain value in cash today for Ricardo shareholders.
“Importantly, the Ricardo directors believe that the acquisition will provide enhanced career opportunities for Ricardo’s employees within the WSP Group as well as access for our clients to a broader service offering.”
Alexander L’Heureux, president and CEO of WSP Global, added: “The proposed acquisition of Ricardo perfectly aligns with WSP’s vision for sustainable, compounding growth and our clear ambitions to expand in advisory, energy transition, water solutions and the rail sector over the next three years.
“We are poised to enhance our ability to deliver innovative solutions as we combine our global reach and resources with Ricardo’s complementary expertise. Moreover, the shared entrepreneurial spirit and technical excellence between our teams position us to create further value for our clients.
“We look forward to welcoming Ricardo’s talented professionals to WSP and seizing new opportunities with our broadened service offering.”