Ricardo to expand presence in Australia with acquisition of Transport Engineering Pty Ltd
Ricardo acquires entire share capital of Transport Engineering, a leading rail technical services consultancy based in Australia
Transport Engineering provides technical advisory, design and engineering services to an established client base in both the public and private sector
Acquisition increases Ricardo’ existing capabilities within the growing Asia-Pacific rail market and provides a footprint for other Ricardo businesses in Australia
Ricardo plc has announced today that it has signed a share purchase agreement to acquire the assets, operations and employees engaged in the Transport Engineering Pty Ltd business. The acquisition is expected to complete on or before 30 June 2019, whereupon it will operate as the Australian division of Ricardo’s international rail business, adopting the Ricardo brand identity from the same date. Transport Engineering is a privately-owned Company and Director Stephen Boyd will remain and continue to lead the business together with the Company’s employees.
Transport Engineering has a strong technical advisory capability in the full life-cycle management of rolling stock and maintenance procurement programs on behalf of its clients, as well as the provision of on-site inspectors and auditors in suppliers’ premises, safety engineering, RAM / maintenance engineering, project management, human factors, testing and commissioning and systems integration. It has delivered an impressive record of growth since it commenced trading in 2015 and employs circa 100 engineers and specialists across Australia and parts of Asia.
Dave Shemmans, CEO of Ricardo plc commented: “I am delighted to be able to announce the signing of the share purchase agreement with Transport Engineering and look forward to welcoming Stephen Boyd and his team into the global Ricardo family. I am excited about the breadth and depth of experience that Transport Engineering will bring to Ricardo and the opportunities that this will bring for Ricardo in Australia. Transport Engineering has an excellent market reputation, strong customer relationships and a very similar culture of quality and excellence in engineering to that of Ricardo.”
“This acquisition is in line with our strategy of diversification both geographically and market sector, further increasing the proportion of our business in the Rail sector. In light of the well documented current challenges in the automotive market where we have seen supressed performance this year, our strategy and market diverse portfolio of businesses is particularly relevant.”
Stephen Boyd, MD of Transport Engineering added. "I am very excited to be joining an international rail business of Ricardo’s calibre and to see the business I’ve built over the past five years embark on its next stage of growth. By leveraging Ricardo’s scale and resources, we will be able to expand rapidly across Australia and New Zealand and broaden the range of technical services we currently offer.”
Ricardo’s interest in the rail sector is underpinned by the increased global interest in urban and high-speed transport networks, and the rapid integration of critical and complex rail technologies as governments respond to accelerating levels of urbanisation. The addition of Transport Engineering expands Ricardo’s rail business to around 700 members of staff.
“I am delighted that Stephen and his team are joining us” says Paul Seller, MD of Ricardo’s rail division. “They have built a first-class operation in Australia, with an impressive portfolio of projects and capabilities. By supporting their desire to offer an increased range of technical disciplines to their clients, we can help them continue to grow within the Australian market and, by extension, support our mission to build a world-class rail services business”.