Canadian engineering group WSP Global has agreed to acquire UK-listed consultancy Ricardo plc in a £363 million all-cash deal, marking its latest move to strengthen its environmental and advisory business lines. The acquisition, priced at 430 pence per share, delivers a 28 percent premium for Ricardo investors and accelerates WSP’s ambitions in the fast-evolving market for sustainable infrastructure and rail services.
The transaction, announced on 11 June, values Ricardo at an enterprise value of approximately US $490 million. The offer swiftly won shareholder support, with 99 percent of voting investors backing the scheme at Ricardo’s Court and General Meetings on 15 July, clearing the last major condition for the deal to proceed. Subject to UK High Court approval and limited regulatory clearances, completion is targeted by the end of 2025.
Ricardo brings specialist capabilities in air-quality modelling, energy transition, rail assurance, and water resilience — all seen as core growth areas for WSP over the next three years. The Montreal-headquartered group, which employs around 67,000 people across more than 40 countries, has made clear its intention to expand in environmental and advisory services as global clients seek expertise in decarbonisation and sustainable transport.
“The proposed acquisition of Ricardo perfectly aligns with WSP’s vision for sustainable, compounding growth and our clear ambitions to expand in advisory, energy transition, water solutions and the rail sector over the next three years,” said Alexandre L’Heureux, President & CEO of WSP Global.
WSP will finance the cash offer through a £230 million term-loan facility, supplemented by existing liquidity. The group also moved quickly to secure deal certainty, acquiring nearly 20 percent of Ricardo’s shares directly from activist investor Science Group at the offer price before launch.
The backdrop to the transaction has been one of growing activist involvement. Science Group built a 21 percent stake in Ricardo earlier in the year, following a January profit warning. It subsequently called for the removal of Ricardo’s chair and advocated for a sale or break-up, a campaign that ultimately paved the way for the WSP offer. Science Group has since exited most of its holding, securing a gain of approximately 70 percent in four months.
Post-acquisition, WSP has signalled its intention to review — and likely divest — Ricardo’s specialist Automotive & Industrial and Performance Products divisions. This would streamline the combined portfolio and increase alignment with WSP’s core focus on green infrastructure and advisory services, although it raises questions for the future of some UK engineering jobs.
“WSP has made a compelling offer which provides certain value in cash today for Ricardo shareholders … and broader career opportunities for our employees,” said Mark Clare, Chair of Ricardo.
Ricardo shares surged 25 percent on the deal announcement and have remained close to the offer price, indicating the premium is fully reflected in the market. WSP’s shares were little changed, with analysts describing the move as “strategically sensible, financially modest.”
The deal extends WSP’s M&A track record following recent acquisitions of Golder, Wood E&E, and POWER Engineers, and signals continued consolidation in advisory-led engineering. The acquisition’s successful completion remains subject to regulatory and court approvals, with a targeted close by year-end.
