15 Nov 2011 07:03
15th November 2011
Wisconsin school bus operations
Stagecoach Group plc ("Stagecoach") today completed the sale of its school bus operations in the US state of Wisconsin ("Wisconsin School Bus") to Student Transportation, Inc.. Part of Wisconsin School Bus will be held in trust, pending approval of the sale by the Surface Transportation Board.
Wisconsin School Bus primarily operates school bus services under contract to school boards in the US state of Wisconsin. The business has been part of Stagecoach since 1999. Although the business has performed well, Stagecoach's share of the US school bus market is relatively small and the sale enables Stagecoach to focus its management and capital on less regulated North American operations, including the fast growing megabus.com business.
The General Manager of Wisconsin School Bus and the rest of its management team has transferred with the business.
The consideration for the sale equated to an enterprise value of US$47,000,000 of which US$46,750,000 has been settled in cash and the balance of US$250,000 is payable in six months' time. The sales proceeds will initially be applied to reduce Stagecoach's consolidated net debt.
The gross assets of Wisconsin School Bus as at 30 April 2011 were US$21.8m. Prior to the sale we were forecasting revenue of US$36.4m and operating profit of US$4.0m for the year ending 30 April 2012.
For further information, please contact:
Stagecoach Group plc www.stagecoachgroup.com
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