Ricardo agrees to acquisition of AEA Technology
AEA Technology plc (AEA Europe) will be acquired by engineering and consultancy firm Ricardo.
Posted by Ron Maverick
Engineering and consultancy firm Ricardo has agreed to the acquisition of AEA Technology plc (AEA Europe) in order to take it out of administration.
AEA Technology was formed in 1996 as a privatised spin-off of the UK Atomic Energy Authority and was floated on the stock market that year.
It has offices in London and Warrington in Cheshire but had been unable to organise a long-term solution to it high levels of debt and the costs of its retirement benefit obligations.
Merger and acquisition consultants were brought in and Ricardo has now agreed to the takeover, which will go through with a total consideration of £18 million and save 390 jobs in the process.
The acquisition will be funded through cash resources and bank facilities.
Will Wright, administrator of AEA Technology, said: "Unable to sustain its pension liability, the company faced a funding crisis which necessitated the appointment of administrators ... We are pleased that we have been able to secure new owners for these businesses."