Engineering and technology consultancy, Ricardo, has announced today (12 November), that it has acquired environmental consultancy, AEA Technology Plc (in administration), for £18 million.
The deal comes as welcome relief for AEA Europe, whose clients included the UK public sector, the European Commission, international agencies and private sector organisations, as in August of this year, the annual financial statement showed the company had a pension liability of £165.5 million and an operating loss of £35.4 million. No historic pension liabilities or bank debts would be transferred under the deal.
All of AEA’s 400 operational staff will now transfer to Ricardo and will operate under the new trading name ‘Ricardo-AEA’. The new division will be lead by former AEA Manging Director Robert Bell, reporting to Martin Fausset, Managing Director of Ricardo UK, and will see the Ricardo group expand by around 20 per cent.
Both Ricardo and AEA Europe have said they expect their client-bases to be boosted by the deal.
Ricardo CEO Dave Shemmans said: “I’m delighted to be able to welcome AEA Europe and its employees to Ricardo. AEA Europe has a strong reputation for its technical capabilities and has a pre-eminent position in advising on and developing major environmental policies. This acquisition supports our ongoing strategy and marks the continued development of Ricardo as the global multi-industry supplier for high quality strategic, technical and engineering services.
“The two businesses share a similar technology-focused professional culture, based on the delivery of innovative world class services to our customer base, utilizing highly skilled employees. Our common long-term strategic drivers of reducing carbon emissions, maintaining air quality and the management of scarce resources provide an excellent opportunity to further develop Ricardo’s expertise in delivering high value-added services to our global customer base.”
Robert Bell, Managing Director of Ricardo-AEA, added: “I am extremely pleased that AEA Europe has become part of Ricardo. The transaction both secures the future for AEA Europe and provides a platform for its continued success and growth as a part of the global Ricardo organization.”
It is anticipated that Ricardo’s international network will allow AEA Europe to develop as a more global business, and increase Ricardo’s industrial client base. In addition, AEA Europe’s strong links with government organisations are expected to enhance Ricardo’s relationships among similar clients.
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