Ricardo sells Chicago facility to PSI and relocates heavy-duty testing to Detroit
Ricardo has announced that it has signed an asset purchase agreement to sell its Chicago technical facility to Power Solutions International (PSI), a US manufacturer of engines and power systems, and will locate Ricardo heavy-duty test operations at Detroit.
In addition to the asset purchase agreement, Ricardo and PSI have also entered into a strategic technology relationship whereby Ricardo’s expertise in advanced engine development and concepts, and in electrification, hybrid and autonomous vehicle controls, will support PSI’s expansion into these new areas.
The sale of the test engineering and development facilities located at Burr Ridge, Chicago, reflects Ricardo’s strategy to reshape its asset base and ensure the business is more agile, efficient and more closely aligned with the changing patterns of customer demand. The company is continuing to invest in upgrading the test beds at its Detroit technical centre, enabling Ricardo to consolidate all powertrain testing operations at this site, while assuring its heavy-duty sector customers of increased capacity for ongoing engine (40 CFR Part 1065) and in-use vehicle (OBD) testing. Ricardo will also continue to provide expertise and innovative solutions to its customers across the United States from its recently expanded technical facility in Santa Clara, California, as well as its established presence in Michigan.
“The sale of the Chicago technical facility and the refocusing of test operations at our Detroit technical centre is an important step which will help to increase our operational efficiency,” commented Ricardo plc CEO Dave Shemmans. “This will help us to better serve the emerging requirements of our customers in North America, across all market sectors, as well as in the increasingly important development of electrified vehicle solutions.”
The Asset Purchase Agreement for the sale of the Chicago technical facility to PSI was signed on 2 March and the transaction is expected to close on 2 April.
For more information on this story, contact: Thomas Patterson, Tel. +1 (630) 468 8719, E-mail: Thomas.Patterson@ricardo.com