Ricardo has acquired the business, operating assets and employees engaged in the business of AEA Technology Plc (in administration) (“AEA Europe”), for a total cash consideration of £18 million.
AEA Europe is a leading environmental consultancy providing technical consultancy services to the UK public sector, the European Commission, international agencies and private sector organisations. The company is a major supplier of services to the UK government, and has a reputation for providing authoritative and independent technical expertise to underpin policy development, implementation and evaluation, in areas including energy and climate change, air quality, sustainable transport, waste management, resource efficiency and chemical risk.
The acquisition will see the AEA Europe business, including an operational staff of approximately 400 located at five UK sites, transferring to Ricardo where it will operate as Ricardo-AEA under the continued leadership of Robert Bell, reporting to Martin Fausset, managing director of Ricardo UK.
Based on its most recent reported results, the assets being acquired generated, for the year ended 31 March 2012, annual revenues of £39 million and delivered operating profit margins similar to those of the rest of the Ricardo group. Its acquisition represents an increase in the size of the business of approximately 20 percent.
The clients of Ricardo and AEA Europe are complementary. It is anticipated that Ricardo’s international network will allow AEA Europe to develop as a more global business, leveraging Ricardo’s industrial client base. In addition, AEA Europe’s strong links with government organisations are expected to enhance Ricardo’s relationships in this customer area.
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