WSP to acquire UK-based firm Ricardo plc for $670M

Key Takeaways:

• Montreal-based WSP Global Inc. has agreed to acquire UK engineering and consultancy firm Ricardo plc for approximately $670 million, marking a significant expansion in WSP’s global footprint and technical consulting capabilities.
• The acquisition aligns with WSP’s 2025–2027 strategic plan by strengthening its position in sectors like energy transition, rail infrastructure, water resilience, and environmental policy—areas where Ricardo’s Environment & Energy and Rail divisions are particularly strong.
• While Ricardo’s Environment & Energy and Rail segments are seen as core to WSP’s future, its Automotive & Industrial and Performance Products divisions are under review and may be divested as part of WSP’s focus on strategic realignment.

The Whole Story:

WSP Global Inc. has reached an agreement to acquire the entire share capital of Ricardo plc, a UK-based engineering and consultancy firm, in a deal valued at approximately $670 million.

The Montreal-headquartered professional services firm said it will pay 430 pence per share for Ricardo, representing an enterprise value of roughly £363.1 million. The acquisition is expected to close in the fourth quarter of 2025, pending shareholder and court approvals under a UK scheme of arrangement, as well as regulatory clearances.

Ricardo employs about 2,700 people across more than 20 countries, offering services in transport, energy, water, and environmental policy. The company’s business is split between its Environment and Energy (EE) and Rail segments, which together account for about 1,700 staff, and its Automotive and Industrial (A&I) and Performance Products (PP) units, which employ around 1,000.

In recent years, Ricardo has shifted its strategic focus toward its EE and Rail operations. Under WSP’s ownership, the company is expected to continue a strategic review of its A&I and PP divisions, which could lead to a divestment.

WSP said the acquisition fits within its 2025–2027 global strategic plan by expanding its presence in high-growth sectors such as energy transition, water resilience, rail infrastructure, and environmental advisory services. The transaction also strengthens WSP’s footprint in key markets, including the United Kingdom, Australia, and the Netherlands.

WSP president and CEO Alexandre L’Heureux said the deal would allow the company to combine its global reach with Ricardo’s technical expertise in strategic consulting and engineering.

To finance the acquisition, WSP has secured a £230 million term loan facility from Royal Bank of Canada. The remainder of the purchase price will be covered using existing credit lines and available cash.

Ricardo’s board has agreed to the acquisition terms, and WSP has received support from major shareholders representing more than 48 percent of Ricardo’s outstanding shares as of June 10. WSP will separately acquire a 19.9 percent stake in Ricardo from Science Group plc around June 16 at the same offer price.

Legal counsel for WSP is being provided by Linklaters LLP, with RBC Capital Markets acting as financial advisor.