(Sharecast News) - Stagecoach said on Friday that it has agreed to buy Kelsian Group's east London bus operations and depot at Lea Interchange for £20m.
The transport operator will pay £10m upon completion, with a further £1m a year payable for 10 years from the first anniversary after completion, subject to certain conditions.
Stagecoach said the deal is a "good strategic fit" with its existing operations in east and south-east London. Lea Interchange depot is located close to Stratford, the busiest station in the UK. It operates 11 contracts on behalf of TfL using a fleet of around 150 buses, with an annual turnover of around £38m.
In addition, the company said the depot provides a "positive platform" to bid for new contracts in the area over the short and medium term.
Stagecoach chief executive Martin Griffiths said: "We have an extensive track-record of operating high-quality and profitable bus services on behalf of Transport for London.
"This targeted acquisition provides operational and margin improvement opportunities that we have successfully delivered at our other London bus depots."
