Ricardo agrees Chicago disposal

Ricardo, the engineering, environmental and strategic consultancy group headquartered in West Sussex, has agreed a $5.5m (£3.9m) deal to sell its Chicago technical facility.

The business has signed an asset purchase agreement to sell the facility to Power Solutions International, a US manufacturer of engines and power systems.

Ricardo will relocate its heavy-duty test operations to its existing facilities in Detroit. In addition to the asset purchase agreement, Ricardo and PSI have also entered into a strategic technology relationship. Ricardo's expertise in advanced engine development, 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, was said to reflect 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.

Ricardo chief executive Dave Shemmans said: "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.

"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."

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