Power Solutions International to acquire Chicago Technical Center

March 20, 2018 By    

Power Solutions International Inc. (PSI), a company that designs, engineers and manufactures emissions-certified, alternative-fuel power systems, agreed to acquire the Chicago Technical Center research and development (R&D) facility from Ricardo Inc.

Ricardo is a subsidiary of Ricardo plc, a global strategic engineering and environmental consultant company.

The agreement says PSI will acquire assets and assume the lease of the 22,400-sq.-ft. R&D facility located in Burr Ridge, Illinois. Additionally, PSI will extend employment to certain key personnel.

The transaction, which is expected to be completed on April 2, is subject to various conditions, including third-party consent. Terms of the deal were not disclosed.

According to PSI, the R&D facility provides three strategic benefits that impact 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 Environmental Protection Agency (EPA) and California Air Resources Board-certified testing cell operations, scheduling and management of the engine testing center.

“We are excited to expand and strengthen our development and testing capabilities, while also increasing our capacity,” says John Miller, CEO of PSI. “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 the company’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,” Miller says.

The company adds this purchase will strengthen PSI’s and Ricardo’s strategic technology relationship, supporting many areas of PSI’s expansion.

“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.

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About the Author:

Joe McCarthy was an associate editor at LP Gas Magazine.

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