WSP Acquires Global Engineering Consultancy Firm Ricardo

WSP

WSP

MONTREAL - WSP will acquire the entire issued and to be issued share capital of Ricardo for 430 pence per share.

According to the release, this reinforces its commitment “to expanding its footprint in high-growth sectors worldwide.” The Acquisition shows an enterprise value of £363.1 million, or $670 million. WSP states this “represents a multiple of 10.4x Ricardo’s pre-IFRS 16 underlying EBITDA for the 12-month period ended December 31, 2024, based on Ricardo’s continuing operations after the divestment of their defense business and including the full year contribution of their acquisition of E3A Advisory PTY Ltd.”

Ricardo is a global engineering consultancy firm located in the UK that has more than 2,700 experts located all around the world and has two main portfolios. The first is “future-focused air quality, water management, energy resilience, policy strategy, and advisory services (‘EE’) and Rail and Mass Transit (‘Rail’) business segments supported by approximately 1,700 professionals.” The second is “Automotive and Industrial (‘A&I’) and Performance Products (‘PP’) business segments, with approximately 1,000 professionals delivering propulsion design and systems engineering services, with niche manufacturing capabilities.” Ricardo has spent the last few years restructuring its business to become a leading engineering consultancy firm.

Under the leadership of WSP, Ricardo will reportedly continue its strategic review of its A&I and PP business units. The release states that no decision has yet been taken. However, it is likely that the review will result in selling the two business units at some point in time.

As a way of moving forward with its 2025-2027 Global Strategic Plan, the acquisition brings Ricardo’s valued expertise in “rail, air quality, water management, energy resilience, policy strategy, and advisory supplements and elevates WSP’s offering in core market sectors.” In terms of location, Ricardo’s footprint matches up with WSP’s and will also work to increase its presence in other markets including the Netherlands, Australia, and the UK.

WSP President and CEO Alexandre L’Heureux said, “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.”

WSP says it has reached an agreement with Ricardo’s board on terms of a “recommended cash acquisition pursuant to which a wholly owned subsidiary of WSP will acquire the entire issued and to be issued share capital of Ricardo at the Offer Price.” This does not include 19.9% interest in Ricardo. WSP will reportedly acquire this from Science Group plc at the Offer Price. This will occur on June 16, 2025. Additional details on the acquisition and timetable can be found here.

About WSP 

“WSP is one of the world’s leading professional services firms, uniting its engineering, advisory and science-based expertise to shape communities to advance humanity. From local beginnings to a globe-spanning presence today, WSP operates in over 50 countries and employs approximately 73,000 professionals, known as Visioneers. Together they pioneer solutions and deliver innovative projects in the transportation, infrastructure, environment, building, energy, water, and mining and metals sectors. WSP is publicly listed on the Toronto Stock Exchange (TSX:WSP).

About Ricardo

“Ricardo plc is a global strategic, environmental, and engineering consulting company, listed on the London Stock Exchange. With over 110 years of engineering excellence and approximately 2,700 employees in more than 20 countries, Ricardo provides exceptional levels of expertise in delivering innovative cross-sector sustainable outcomes to support energy transition and environmental services, together with safe and smart mobility. Its global team of consultants, environmental specialists, engineers, and scientists support our customers to solve the most complex and dynamic challenges to help achieve a safe and sustainable world.”