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Ricardo PLC has agreed to a £281 million all-cash buyout from Canadian consultancy firm WSP Global Inc, the two companies announced on Wednesday, resolving a period of agitation by Ricardo investor Science Group PLC. Montreal, Quebec-based WSP will pay 430 pence per share for the Shoreham-by-Sea, West Sussex-based environmental and engineering consultancy. The offer is at a 28% premium to Ricardo’s 335p closing price on Tuesday. The stock was up 25% to 418.41p early Wednesday in London. WSP shares closed down 1.2% to C$271.88 in Toronto on Tuesday. ‘The WSP group recognises the value of Ricardo’s Automotive & Industrial and Performance Products businesses and its long history and respected brand in the specialist and automotive design and manufacturing sector and will work with Ricardo’s management team to complete their strategic review of these business units,’ a statement on Wednesday said. Ricardo’s directors deem the bid to be ‘fair and reasonable’. WSP said it has received undertakings to accept the offer representing 48% of Ricardo shares. The offer also has the backing of Ricardo shareholder Science Group, which agreed to sell 12.4 million Ricardo shares to WSP at the offer price on Wednesday, representing an additional 19.99% toward offer acceptance. Cambridge, England-based Science Group, which has a 21.8% total stake in Ricardo, said cash proceeds from the sale of its shares in Ricardo will amount to £53.5 million, giving it a 70% pretax return on investment. It said it will retain the proceeds for future strategic investment and opportunities. ‘Science Group supports the WSP offer. The offer price is a 102% premium relative to the Ricardo share price of 213 pence shortly before Science Group initiated its share purchases and corporate action,’ it said. ‘All Ricardo shareholders have benefitted from the Science Group investment.’ Science Group noted it purchased 13.5 million shares in Ricardo, at an average price of 239p each, between February and May. Science Group shares were up 10% to 510.00p early Wednesday. Ricardo shareholders were due to vote at a general meeting scheduled for June 18. The meeting requisitioned by Science Group had the sole resolution to remove Ricardo Chair Mark Clare from the board. Science on Wednesday said it would write to Ricardo regarding the general meeting and expects it to be adjourned. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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