12 Nov 2012 07:00
12 November 2012
Stagecoach Group plc
Acquisition of bus operations in Merseyside, Cheshire and North Wales
Stagecoach Group plc ("Stagecoach") is pleased to announce that Glenvale Transport Ltd, a wholly owned indirect subsidiary of Stagecoach, has agreed to acquire certain businesses and assets of subsidiaries of FirstGroup plc ("First") for a consideration of £4.5 million.
The businesses being acquired operate commercial and tendered bus services in Chester, Wrexham and Birkenhead, employing approximately 290 people.
In the 12 months to 31 March 2012, the business had revenues of £11.9 million, EBITDA of around £1.7 million and an operating profit of around £0.6 million.
The purchase includes around 110 vehicles, as well as the owned depot site at New Chester Road, Rock Ferry, Birkenhead; the owned depot facility at Liverpool Road, Chester; and a leased out-station facility at Rhosddu Industrial Estate, Rhosddu, Wrexham.
The acquisition will allow Stagecoach to expand its successful bus operations in the North West where our Merseyside and South Lancashire business already operates more than 300 buses and employs more than 900 staff.
The operations will become part of Stagecoach Merseyside and South Lancashire, which carries 33 million passengers a year and is led by Managing Director Elisabeth Tasker.
Staff will transfer to Stagecoach's Glenvale Transport Ltd business under TUPE arrangements.
Stagecoach expects the acquisition to be completed in December 2012 or January 2013.
Les Warneford, Managing Director of Stagecoach UK Bus, said: "This acquisition will extend our operations in the north west of England, particularly in Merseyside. We believe there is significant scope to develop these businesses and improve their financial performance by investing in the quality of the bus fleet, as well as offering customers our good value fares and attractive network tickets."
ENDS
Investors and analysts
Martin Griffiths, Finance Director 01738 442111
Ross Paterson, Director of Finance & Company Secretary 01738 442111
Media
Steven Stewart, Director of Corporate Communications 07764 774680