Ricardo has proposed to acquire an 85% stake in E3 Advisory for approximately AUD $101.4 million, which aligns with its strategy to enhance capabilities in environmental and energy transition consultancy.

Information on the Target

Ricardo has entered into an agreement to acquire an 85% stake in E3 Advisory for approximately AUD $101.4 million (£51.0 million). This transaction is subject to the completion of the sale of Ricardo Defense. Ricardo plans to acquire the remaining 15% of E3 Advisory by January 2028. The valuation of the acquisition presents an appealing adjusted EBITDA multiple of approximately 8.6x based on the financial year 2023/2024.

E3 Advisory is recognized for its highly skilled team and robust track record, as well as its substantial growth potential, which aligns well with Ricardo’s geographic focus and expertise in energy and transportation infrastructure. The firm provides consultancy services to both government and private clients throughout the lifecycle of infrastructure projects, specializing in sectors such as transport, clean energy, water, and mining.

Industry Overview in Australia

The infrastructure industry in Australia is experiencing significant growth, with public sector investment projected to reach around AUD 230 billion by 2027. This expansion is driven by the need for enhanced infrastructure to support a growing population and economy. At t