Ricardo PLC (LSE:RCDO) has completed the US$85 million (£67.5 million) sale of its defence business to fund a takeover of Australian infrastructure firm E3 Advisory.
Engineering and manufacturing firm Ricardo Defense had been taken over Proteus Enterprises and Gladstone Investment on a debt-free basis, a Thursday statement said.
Proceeds would be put towards fully funding an initial 85% stake in E3 Advisory, it added, which Ricardo noted would be concluded “shortly”.
“We continue to make progress in focusing on our core consulting portfolio as we accelerate our transformation to become a world-leading strategic and engineering consultancy in environmental and energy-transition service,” chief executive Graham Ritchie commented.
“For this reason, Ricardo firmly believes that Ricardo Defense will be a better fit for its new owners, who are focused on supporting and operating defence companies.”
Ricardo had flagged the sale of its defence wing in mid-December, as the deal for E3 Advisory was unveiled.
Shares moved 0.2% lower to 419p on Thursday.