Lloyd’s Register Group has sold its rail division, LR Rail, to global strategic, technical, and environmental consultancy Ricardo plc for GBP42.5 million (USD63.5 million). The buyout was announced by LR’s adviser on the sale, Livingstone Business Services.
LR Rail is an international specialist rail consultancy and independent assurance business with a network of 17 regional offices across Europe, Asia, and the Middle East, employing a team of over 440 rail engineers and specialists. In the year ended 30 June 2014, LR Rail delivered standalone revenue of GBP48.1 million and EBITDA of GBP3.7 million.
Its services include rolling stock design, signalling and train control, intelligent rail systems, operational efficiency improvement, training, and independent assurance for a variety of international clients.
When the acquisition is completed, LR Rail will form the core of a new international rail business within Ricardo and will be rebranded Ricardo Rail.
Lloyd Register’s current transportation director, Paul Seller – who will become managing director of Ricardo Rail – said, “We have an excellent team and a strong reputation in the industry and I believe that in Ricardo we have an ideal new owner who shares our strategic vision to create a truly global rail business.”
Dave Shemmans, CEO of Ricardo, added, “LR Rail has an impressive market reputation and a very similar culture of quality and excellence in engineering to that of Ricardo and will be an exceptionally good fit with Ricardo in terms of culture, geography, product offering, and business model.”