WSP Acquires Ricardo to Chart New Horizons for Engineering
WSP Global is making bold moves again, this time with a headline-grabbing acquisition of the UK-based engineering consultancy Ricardo.
The £363 million deal is turning heads in the construction and infrastructure consulting sectors, and for good reason. Combining Ricardo’s niche environmental and rail expertise with WSP’s global reach, this strategic union sets the stage for a transformed future in sustainable infrastructure delivery.
A Smart Offer That Seals the Deal
Ricardo shareholders have been offered 430 pence per share in cash, representing a premium of nearly 29 percent over the latest closing price and a solid 69 percent over the three-month average. It’s a tidy reward for shareholders and a clear signal of WSP’s confidence in Ricardo’s value.
Among those reaping rewards is Science Group, Ricardo’s largest investor with a 20 percent stake. They’re poised to walk away with a 70 percent return, or around £53.5 million before tax. Other key stakeholders—including Gresham House, Schroders, and Royal London—have also backed the offer, smoothing the path to closure.
The deal is expected to complete in the final quarter of 2025, pending shareholder and regulatory approvals in the UK and Europe.
Strategic Fit with Global Implications
This isn’t just a financial transaction—it’s a calculated alignment of purpose. WSP’s global engineering portfolio gains a significant boost with Ricardo’s 2,700-strong team spanning more than 20 countries.
Ricardo’s recognised specialisms include:
- Rail electrification and policy advisory
- Environmental consultancy for air quality, climate, and water
- Energy transition strategy and net-zero planning
- Automotive and industrial engineering (though possibly not for long)
WSP’s CEO Alexandre L’Heureux described the acquisition as a natural fit: “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 added: “We look forward to welcoming Ricardo’s talented professionals to WSP and seizing new opportunities with our broadened service offering.”
Mark Clare, Chair of Ricardo, gave a measured but optimistic view: “WSP has made a compelling offer… provides certain value in cash today for Ricardo shareholders.” He also emphasised the opportunities this presents for employees and clients alike.
Financial Logic Behind the Move
The valuation of Ricardo comes in at £363.1 million, or around CAD $670 million. That translates to a multiple of 10.4 times the adjusted EBITDA, excluding the defence business. The acquisition will be funded by a combination of WSP’s existing cash and £230 million in term loan financing.
In terms of finance, it’s a well-structured move. The timeline is brisk, with closure aimed within nine months, assuming all the necessary approvals fall into place.
What Happens After the Ink Dries?
Once the deal is finalised, WSP intends to move quickly. There are already murmurs that Ricardo’s automotive and industrial engineering arm might be sold off. That wouldn’t be surprising as it’s not a perfect match for WSP’s current strategy.
Instead, the company is laser-focused on strengthening its capabilities in:
- Net-zero advisory services
- Infrastructure policy consultancy
- Complex environmental risk mitigation
- High-performance rail and transit planning
It’s all about creating a more nimble, specialised offering to match the complexity of global infrastructure demands.
Why It Matters for the Sector
The ripple effects of this acquisition will likely be felt far and wide. For one, it reinforces the trend of consolidation in the consultancy space. As public and private sector clients demand more comprehensive, tech-enabled solutions, scale and diversity of expertise are proving to be major advantages.
In the UK, the deal will establish a transatlantic powerhouse in infrastructure consultancy. And internationally, it boosts WSP’s reach in Europe, the Middle East, and Asia—regions where Ricardo has already built strong partnerships.
There’s also a talent dynamic at play. Ricardo’s specialists bring with them decades of domain expertise and a reputation for innovation. That could supercharge WSP’s ambitions to lead in climate resilience, smart mobility, and circular economy solutions.
A Shared Future with Global Benefits
This acquisition looks to be a win-win. Ricardo shareholders cash out at a premium. WSP bolsters its footprint in high-growth sectors. And industry clients gain access to broader capabilities delivered under one global roof.
It’s the kind of deal that doesn’t just reshuffle market positions—it redraws the map. From cleaner rail systems to smarter cities, the combined expertise of WSP and Ricardo is well positioned to shape the future of infrastructure.
