Ricardo PLC Acquisition of Aither Pty Ltd. (6530S)
13 Mars 2023 - 8:00AM
UK Regulatory
TIDMRCDO
RNS Number : 6530S
Ricardo PLC
13 March 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
13 March 2023
Ricardo plc acquires a leading Australian water advisor, Aither
Pty Ltd.
Ricardo plc, a global strategic, environmental, and engineering
consulting company, today announces the acquisition of Aither Pty
Ltd., a leading water-and-natural-resources advisory
consultancy.
Background to Aither Pty Ltd.
Headquartered in Melbourne, Australia, Aither's purpose is to
help governments and businesses make better decisions about
globally significant issues relating to water and natural
resources. Aither's 51 employees are based mainly across Australia,
but it also has advisers located in the USA, the UK, France,
Ireland, and New Zealand. The company supports clients in
navigating uncertainty and complexity within the water environment
by providing clear evidence-based analysis, insights, and advice.
Consulting areas include water policy and management, water
utilities and infrastructure, water markets, and resilience and
adaptation. Aither is internationally recognised for its unique
service offering and supports more than 300 client projects
worldwide.
Acquisition rationale
Aither is a market leader in water in Australia, which will
enable Ricardo to scale its capability in resilience and adaptation
in order to realise opportunities for growth related to climate
adaptation, ESG, carbon and natural capital. Ricardo will integrate
Aither into its Australia operations to provide scale and depth in
its portfolio, while the acquisition also provides an entry into
the US market for water-management services. Also significant are
Aither's growing digital tools in water markets, where it already
leverages its IP and data to offer water-valuation tools on a
subscription basis to a smaller set of its clients. This can be
extended to a scalable offering, thereby providing further client
value.
Acquisition details
Under the terms of the acquisition, Ricardo has acquired a 90%
shareholding in Aither Pty Ltd from the founders and co-directors
Chris Olszak and Will Fargher, for a cash consideration of up to
GBP17m of which GBP9.6m was paid on completion. The deferred
consideration is based upon the achievement of certain performance
targets for the 10 months ended 31 December 2023 and the retention
of the former owners of the business. The deferred consideration
can range from nil to a maximum of GBP7.4m at an annualised EBITDA
multiple of under 11 times. The remaining 10% shareholding will be
acquired on second or third anniversary of the Acquisition Closure
Date, using the same EBITDA multiple as the deferred consideration,
subject to a maximum. Ricardo retains full control and voting
rights in Aither. In its draft unaudited accounts for the year
ended 30 June 2022, Aither reported gross assets of c. GBP2.8m, net
assets of c. GBP0.8m, revenues of c.GBP5.8m, profit before tax of
c. GBP1.3m and an EBITDA margin of c.22%.
Graham Ritchie, CEO of Ricardo, commented:
"The market for Aither's services is growing rapidly given the
scale of water and natural-resources challenges globally, which is
increasing recognition of the need for specialist economics, policy
and strategic advice. With the acquisition of Aither, we will be
able to expand our capabilities across the entire water value
chain, as well as in natural resources, climate resilience and
adaption - allowing Ricardo to serve a greater range of our
clients' needs globally."
-ENDS-
About Ricardo
Ricardo plc is a global strategic, environmental, and
engineering consulting company, listed on the London Stock
Exchange. With over 100 years of engineering excellence and close
to 3,000 colleagues in more than 20 countries, we provide
exceptional levels of expertise in delivering innovative
cross-sector sustainable outcomes to support energy transition and
scarce resources, environmental services together with safe and
smart mobility. Our global team of consultants, environmental
specialists, engineers, and scientists support our customers to
solve the most complex and dynamic challenges to help achieve a
safe and sustainable world. Visit www.ricardo.com
About Aither Pty. Ltd.
Aither is a leading water-and-natural-resources advisory firm.
Headquartered in Melbourne, Australia, it exists to address
globally significant issues by helping governments and businesses
make better decisions. Its unique service offering is based on its
integrated understanding of the water sector to drive policy and
strategic analysis, insights and advice. Visit
www.aither.com.au
Investor relations contacts:
Natasha Perfect, Ricardo Natasha.perfect@ricardo.com
Elisabeth Cowell, SEC Newgate ricardo@secnewgate.co.uk
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