Power Solutions International Inc. (PSI), a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems, announces that it has signed an asset purchase agreement to acquire the Chicago Technical Center research and development facility from Ricardo Inc. Ricardo, Inc. is a subsidiary of the global strategic engineering and environmental consultancy, Ricardo plc. PSI will acquire the assets and assume the lease of the 22,400-sq.-ft. R&D facility located in Burr Ridge, IL, and will extend employment to certain key personnel. The transaction, which is expected to be completed on April 2, 2018, is subject to various conditions, including third party consent. Terms of the deal were not disclosed.
According to PSI management, the advanced R&D facility provides three strategic benefits that will immediately provide positive impact for the company's on-road, stationary and mobile industrial engine programs: increased speed to market response; greater ability to innovate and optimize product performance and reliability; and lower cost of product development through direct control of in-house EPA and CARB-certified testing cell operations, scheduling, and management of the industry-leading engine testing center.
"We are excited to expand and strengthen our development and testing capabilities, while also increasing our capacity," says John Miller, PSI's Chief Executive Officer. "This facility will enable us to respond more quickly, efficiently and cost-effectively to new opportunities as we continue to develop and enhance products to meet evolving market demands and fuel sources."
According to Miller, the Chicago Technical Center has the capacity to meet PSI's current and future engine development, certification and durability testing needs. The facility includes four dynamometer engine test cells with U.S. EPA 1065 capability, covering a range of areas including emission, performance, durability, altitude, and fuel blending testing. "The testing center puts us in a much stronger position to meet our goals, at a fraction of the cost of building a comparable R&D and testing facility," says Miller.
This purchase will strengthen PSI's and Ricardo's strategic technology relationship that supports many of the new areas of PSI's expansion. Ricardo has a longstanding global reputation for advanced engine development and concepts, most recently focusing on hybrid, electrification and autonomous vehicle controls. "PSI has an advanced engineering team that we have cooperated with over the years, and this new relationship will provide great value to both companies," says Michael Paul Rivera, President of Ricardo.