(Alliance News) - FirstGroup PLC on Wednesday said it is buying Essex-based commercial bus operator Ensign Bus Co Ltd for an undisclosed sum, expecting the acquisition to offer it value growth.
The new unit's operations include rail replacement and private hire contracts and are "complementary to First Bus's operations in Essex", the company said.
Ensign Bus has a fleet of 55 buses.
Besides offering commercial bus operations, Ensign Bus has a vehicle refurbishment & re-sale business.
FirstGroup, an Aberdeen, Scotland-based transport company, said it expects the acquisition to provide synergies and growth opportunities in the business-to-business and bus vehicle dealership markets.
FirstGroup expects an adjusted net cash position at the end of its financial year 2023 ending March 25 to be around GBP70 million to GBP80 million, at least 7.0% higher than GBP65.4 million a year prior, if the acquisition completes before that.
FirstGroup shares rose 5.4% to 114.80 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Firstgroup (FGP)