Ricardo PLC on Monday said it acquired Australia-based railway consultancy firm Transport Engineering Pty Ltd for a maximum of GBP28.9 million in cash.
The engineering consultant said the acquisition will provide it with a strong foothold in the Australian rail market, alongside a footprint for other Ricardo businesses. The deal, funded by existing bank facilities, will also be immediately earnings-enhancing, Ricardo said.
Following the acquisition, Transport Engineering will be renamed Ricardo Rail Australia. Director Stephen Boyd will remain with the company.
Ricardo Chief Executive Officer Dave Shemmans said: "I am delighted to be able to announce the signing of the share purchase agreement with Transport Engineering and look forward to welcoming Stephen Boyd and his team into the global Ricardo family."
"This acquisition is in line with our strategy of diversification both geographically and market sector, further increasing the proportion of our business in the Rail sector. In light of the well documented current challenges in the Automotive market where we have seen supressed performance this year, our strategy and market diverse portfolio of businesses is particularly relevant."
Sourced from Morning Star