- Successful completion of majority of a complex acquisition – business integration process now well underway
- Twelve month Transitional Services Agreement with Lloyd’s Register Group now in effect, to manage remaining outstanding transitional matters
- Ricardo Rail now formally launched to create a world-class international force in railway consultancy, assurance and engineering
Ricardo plc has confirmed today that, further to its previous announcement on 17 April 2015, the transfer of Lloyd’s Register Rail from Lloyd’s Register Group Limited to Ricardo is materially complete, for a consideration of £42.5 million, subject to any adjustments for working capital. As expected, Ricardo is waiting for the approval from the Chinese Government for the acquisition of the small rail joint venture part owned by Lloyd’s Register Group in China. This process is expected to take a further three months.
In parallel with completion of the majority of the acquisition, a twelve month Transitional Services Agreement is now in operation with Lloyd’s Register Group providing administrative and operational support on the remaining elements of the transfer of the former LR Rail business to Ricardo.
“I am tremendously proud of the work of the transition team which has enabled us to now formally launch the Ricardo Rail business” commented Ricardo plc CEO Dave Shemmans. “More than this, the team has set out and begun to implement a strategy for integration and future growth. I would like to extend a warm welcome to the former LR Rail employees around the world who have today formally joined the Ricardo family, and I would also like to express my personal thanks to the senior management team of Lloyd’s Register Group for their efforts in facilitating a rapid completion of this acquisition and a smooth and effective transition.”
“This is an exciting moment for the Ricardo Rail team, as we set-out on our mission to grow a world-class railway assurance, consultancy and engineering business,” added Ricardo Rail managing director Paul Seller. “Even during the process of transition, we have already identified many opportunities to deliver benefits through collaboration and integration with other parts of Ricardo. Despite the challenges of such a complex transition of ownership we have also been able to maintain our focus on business operations and customer service, and we look forward now to growing the new Ricardo Rail business in the months and years ahead.”
A full copy of this press release and the accompanying RNS announcement are available from the links at the top right of this page.
Further information on Ricardo Rail is available at http://rail.ricardo.com/.