RE: North America bus contract14 Jan 2024 11:44
Ignacio Garat, CEO of Mobico, announced last Thursday the decision to begin the process of divestment of that business, which operates a fleet of the famous yellow vehicles, which serve schools located in about 30 states.
Market sources indicate that Mobico has signed the investment bank Goldman Sachs as advisor and coordinator of the process. It will have the support of Bank of America, the group's regular strategic advisor. The operation could last half a year: after preparing the sales notebook and formulating the first round of offers, the candidates must carry out an extensive operational, accounting and legal review of the subsidiary (due diligence) before formulating binding proposals.
Analysts consider that, taking into account previous transactions in the sector, the operation could be between 1,500 and 2,000 million dollars (1,400 to 1,900 million euros). Jefferies analyst Matthew Copeland points out that the sale could reduce the group's net debt from 4.1 to 2.5 times annual EBITDA.
The interest of the funds
In principle, the great candidates to carry out the acquisition are infrastructure investment funds. In recent years, these entities have begun to buy various bus operators in Europe and North America, understanding that their concessions and contracts allow them to ensure relatively stable income in the medium term. For example, EQT acquired First Group's subsidiaries in the United States in 2021 (including school buses for $4.6 billion).