Engineering and consulting firm Ricardo plc has announced that is buying consultancy Lloyd’s Register Rail
Following completion of the transaction, expected by 1 July, Ricardo will combine the two firms’ expertise to form Ricardo Rail in a £42.5 million deal. Current Lloyd’s Register Rail Managing Director Paul Seller will then become Managing Director of Ricardo Rail.
Lloyd’s Register Rail provides advice on services including rolling stock design, signalling and train control, operational efficiency improvement and training. Its client base includes Network Rail, Hitachi Rail Europe, Crossrail and MTR. Its acquisition is central to Ricardo’s plans for growth within the rail sector, and the firms says it ‘will bring an extended offering to an enlarged global client base of which there is limited overlap and significant opportunities for joint growth’.
The transaction will take place on a cash-free and debt-free basis and will be funded from Ricardo’s enlarged £75 million bank facilities.