WSP Expands Global Reach with Acquisition of Ricardo for Enhanced Engineering Solutions

WSP Acquires Ricardo to Chart New Horizons for Engineering
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**Date: June 18, 2025**

WSP Global is making significant strides in the engineering sector with its recent acquisition of the UK-based consultancy firm, Ricardo. The deal, valued at **£363 million**, has garnered attention in the construction and infrastructure consulting industries, and for good reason. This strategic union merges Ricardo’s specialized knowledge in environmental and rail sectors with WSP’s expansive global reach, paving the way for a new era in sustainable infrastructure delivery.

### A Smart Offer That Seals the Deal

Ricardo shareholders have been offered **430 pence per share in cash**, which reflects a premium of nearly **29 percent** over the most recent closing price and an impressive **69 percent** over the three-month average. This offer not only rewards shareholders but also signals WSP’s confidence in Ricardo’s potential. Notably, Science Group, Ricardo’s largest investor with a **20 percent** stake, stands to gain a **70 percent** return, amounting to approximately **£53.5 million** before tax. Other significant stakeholders, including Gresham House, Schroders, and Royal London, have also supported the offer, facilitating a smoother path to finalization. The deal is anticipated to close in the final quarter of 2025, subject to shareholder and regulatory approvals in the UK and Europe.

### Strategic Fit with Global Implications

This acquisition goes beyond mere financial transactions; it represents a strategic alignment of missions. WSP’s engineering portfolio is set to receive a substantial enhancement from Ricardo’s team of **2,700 professionals** operating across more than **20 countries**. Ricardo’s recognized areas of expertise include:

– Rail electrification and policy advisory
– Environmental consultancy focusing on air quality, climate, and water
– Energy transition strategy and net-zero planning
– Automotive and industrial engineering (though this may change)

WSP’s CEO, Alexandre L’Heureux, described this acquisition as a natural fit, stating, “We are poised to enhance our ability to deliver innovative solutions as we combine our global reach and resources with Ricardo’s complementary expertise.” He expressed enthusiasm about welcoming Ricardo’s talented professionals and the new opportunities that this expanded service offering will create.

Mark Clare, Chair of Ricardo, offered a positive perspective: “WSP has made a compelling offer… providing immediate value in cash for Ricardo shareholders.” He highlighted the potential benefits this merger brings to both employees and clients.

### Financial Logic Behind the Move

The valuation of Ricardo stands at **£363.1 million**, roughly equivalent to **CAD $670 million**, translating to a multiple of **10.4 times** the adjusted EBITDA, excluding the defense segment. WSP plans to finance the acquisition through a combination of its existing cash reserves and **£230 million** in term loan financing. The structured financial approach is sound, with plans for a swift closure within nine months, contingent on securing the necessary approvals.

### What Happens After the Ink Dries?

Once the acquisition is complete, WSP aims to act quickly. There are indications that Ricardo’s automotive and industrial engineering division could be divested, as it may not align with WSP’s current strategic focus. Instead, WSP intends to concentrate on enhancing its capabilities in:

– Net-zero advisory services
– Infrastructure policy consultancy
– Complex environmental risk mitigation
– High-performance rail and transit planning

This focus aims to create a more agile and specialized offering that meets the complexities of global infrastructure needs.

### Why It Matters for the Sector

The implications of this acquisition are significant. It reinforces the ongoing consolidation trend in the consultancy sector. As public and private sector clients increasingly demand comprehensive, technology-driven solutions, the advantages of scale and diverse expertise become paramount. In the UK, this deal will establish a formidable transatlantic infrastructure consultancy powerhouse. Internationally, it enhances WSP’s presence in Europe, the Middle East, and Asia—regions where Ricardo has already established strong partnerships.

Additionally, this merger introduces a wealth of talent. Ricardo’s specialists bring decades of experience and a reputation for innovation, which could greatly enhance WSP’s initiatives in climate resilience, smart mobility, and circular economy solutions.

### A Shared Future with Global Benefits

In conclusion, this acquisition appears to be mutually beneficial. Ricardo shareholders will receive cash at a premium, WSP will enhance its position in high-growth sectors, and industry clients will gain access to a broader range of services under one global entity. This deal not only reshuffles market positions but also redefines the landscape of the infrastructure sector. With combined expertise, WSP and Ricardo are well-positioned to influence the future of infrastructure, from cleaner rail systems to smarter urban environments.