Ricardo signs engine deal of the century with McLaren Engineering group Ricardo has signed a deal to supply McLaren Automotive with engines. The deal worth at least £200m, will see the British engineer supply engines from its base just outside Brighton. The supply agreement that start in 2016 is the largest new order in almost a century for Ricardo providing revenue in the order of £40m a year until 2020 and beyond, and represents the biggest supply contract ever signed by McLaren. "The entire Ricardo team and I look forward to working with McLaren Automotive to fulfil its engine requirements over the coming years, creating truly exceptional UK designed and manufactured products for global markets," said Dave Shemmans, Ricardo chief executive. The partnership between McLaren and Ricardo has already brought three new models to market in as many years, and Mike Flewitt, McLaren Automotive chief executive added: "I am extremely pleased to be able to confirm this announcement with Ricardo." Ricardo will increase capacity at its high performance assembly facility enabling it to produce 5,000 engines per year. The facility is already producing engines for the P1 supercar and the current family of McLaren engines which include the M838T 90 degree V8 twin-turbo. Ricardo was founded by Sir Harry Ricardo as Engine Patents Ltd in 1915, and recently expanded into environmental consultancy through the £18m acquisition of AEA Technology in November of last year. Shares in Ricardo closed up more than 5pc at 667.5p.