Ricardo to sell Defense business, buy 85% stake in E3 Advisory

Strategic, environmental, and engineering consulting firm Ricardo said on Monday that it has agreed the sale of its Defense business to Proteus Enterprises and Gladstone Investment Corporation for $85m (£67.5m).

It said the sale is "highly complementary" to its five-year strategy and supports the acceleration of Ricardo's portfolio transition to a "high growth, high margin and less capital-intensive business" in the medium to long term.

Separately, the group also said it has agreed to buy an 85% stake in Australian consultancy business E3 Advisory for around AUD 101.4m (£51m). It expects to buy the remaining 15% of E3 Advisory by January 2028.

It said E3 Advisory's "skilled team, strong track record and substantial growth potential are highly complementary to Ricardo's geographic focus and capability in energy and transport infrastructure".

Chief executive Graham Ritchie said: "The disposal forms part of the group's stated strategy to optimise our portfolio, as it repositions itself for long-term and sustainable growth in environmental and energy transition solutions.

"Ricardo Defense has an established and successful history in delivering integrated vehicle engineering solutions for the US Army, and as a group, we are privileged to have played a role in its success. We are confident, that under a different ownership, this business will continue to grow and prosper.

"With the sale of Ricardo Defense and the announcement that we have entered into an agreement to acquire E3 Advisory, we are now a more focused business, leveraging our expertise to create further value in the medium to long term across our chosen markets."