Ricardo PLC Sale of Chicago Technical Faclility (6130G)

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RNS Number : 6130G

Ricardo PLC

05 March 2018

5 March 2018

RICARDO PLC

("Ricardo" or the "Group")

RICARDO SELLS CHICAGO TECHNICAL FACILITY TO POWER SOLUTIONS INTERNATIONAL

Ricardo plc is a global engineering, technical, environmental and strategic consultancy business, which also manufactures and assembles niche, high-quality and high-performance products.

Ricardo today announces that it has signed an asset purchase agreement to sell its Chicago technical facility to Power Solutions International ("PSI"), a US manufacturer of engines and power systems, for a consideration of $ 5.5m. The transaction is expected to close on 2 April 2018.

Ricardo will relocate Ricardo's heavy-duty test operations to its existing facilities in Detroit. In addition to the asset purchase agreement, Ricardo and PSI have also entered into a strategic technology relationship whereby Ricardo's expertise in advanced engine development and concepts, and in electrification, hybrid and autonomous vehicle controls, will support PSI's expansion into these new areas.

The sale of the test engineering and development facilities located at Burr Ridge, Chicago, reflects Ricardo's strategy to reshape its asset base and ensure the business is more agile, efficient and more closely aligned with the changing patterns of customer demand. The company is continuing to invest in upgrading the test beds at its Detroit technical centre, enabling Ricardo to consolidate all powertrain testing operations at this site, while assuring its heavy-duty sector customers of increased capacity for ongoing engine (40 CFR Part 1065) and in-use vehicle (OBD) testing. Ricardo will also continue to provide expertise and innovative solutions to its customers across the United States from its recently expanded technical facility in Santa Clara, California, as well as its established presence in Michigan.

Commenting on the disposal, Dave Shemmans, Chief Executive officer, said:

"The sale of the Chicago technical facility and the refocusing of test operations at our Detroit technical centre is an important step which will help to increase our operational efficiency. This will help us to better serve the emerging requirements of our customers in North America, across all market sectors, as well as in the increasingly important development of electrified vehicle solutions."

-ENDS-

 
 
   Further enquiries: 
 Ricardo plc                                    Tel: [phone] 
 Dave Shemmans, Chief Executive Officer         Website: www.ricardo.com 
  Ian Gibson, Chief Financial Officer 
 Newgate Communications                         Tel: [phone] 
  Adam Lloyd / Zoë Sibree / Ed Treadwell    [e-mail] 
 

NOTES TO EDITORS:

Ricardo plc is a global, world-class, multi-industry consultancy for engineering, technology, project innovation and strategy. Our people are committed to providing outstanding value through quality engineering solutions focused on high efficiency, low emission, class-leading product innovation and robust strategic implementation. With a century of delivering excellence and value through technology, our client list includes the world's major transportation original equipment manufacturers, supply chain organizations, energy companies, financial institutions and governments. Guided by our corporate values of respect, integrity, innovation and passion, we enable our customers to achieve sustainable growth and commercial success. Ricardo is listed in the FTSE4Good Index, which identifies global companies that demonstrate strong environmental, social and governance (ESG) practices. Ricardo, Inc. is the US subsidiary of Ricardo plc. For more information, visit www.ricardo.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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March 05, 2018 02:00 ET (07:00 GMT)