Ricardo to sell German exhaust manufacturing business

Ricardo to sell German exhaust manufacturing business
27 July 2010

It was announced today that an agreement has been signed for the planned sale of the Prototechnik exhaust manufacturing business of Ricardo plc to J. Eberspächer GmbH & Co. KG.

The sale agreement includes the transfer of the business, employees, plant and equipment and inventories for cash consideration of €2.0 million. Ricardo retains responsibility for trading until completion and for the recovery of receivables and payment of accounts payable at the completion date. The disposal is subject to regulatory approval, which is expected to be obtained shortly and will result in a write-off of assets of an estimated €2.8 million in the financial statements for the year ended 30 June 2010.

Commenting on the planned sale of the company’s German exhaust manufacturing business, Ricardo plc group finance director Paula Bell said: “I am pleased that we have been able to conclude an agreement with Eberspächer on the planned sale of the exhaust manufacturing business. This deal will enable the senior management team of Ricardo Deutschland GmbH to focus exclusively on the continued development and growth of our successful core engineering services and strategic consulting businesses in Germany.”

Ends

 
Media contact:

Anthony Smith
Ricardo Media Office    
Tel:  +44 (0)1273 382710
Fax: +44 (0)1273 880218
E-mail: media@ricardo.com