£29m engineering deal

ENGINEER Ricardo has bought an Australian railway firm in a deal that will be worth up to £29m.

The West Sussex-based firm, which makes engines for McLaren’s road cars, has agreed to buy all of Transport Engineering’s shares from its founders Stephen and Alia Boyd.

The deal is expected to go through by the end of June. Ricardo will pay Transport Engineering £21m when the deal completes and up to another £4m in 2020 and £4m in 2021 if it meets financial performance targets.

Ricardo is looking to become less reliant on its automotive arm, which is struggling amid falling demand for new cars in Europe and the US.