Transport group strengthens overseas presence

Birmingham based public transport group, National Express has strengthened its international portfolio with two acquisitions.

In an announcement to the markets, the group revealed it had completed the deals – one in the United States and one in Spain – in November.

Both acquisitions will enable the group to make further inroads into target markets.

In the US, the group has acquired a school bus and coach business with 204 vehicles, based in Cincinnati, Ohio.

“This acquisition strengthens our presence in Ohio, enabling us to grow our business further, as well as improve our service offering to our customers in Cincinnati,” it said.

The second deal sees the group take over a Madrid bus operator with 73 vehicles. The business provides staff transfers for a large local airline and national bank headquarters; an urban transport contract in Azuqueca, Guadalajara; and, school bus services in Madrid.

Both businesses are expected to deliver returns of 15-20%, which the group said was in line with its guidance.

In a brief trading update, National Express said it continued to see good trading across all of its divisions during October and November, in line with trends previously identified.

“We are encouraged by strong early Christmas trading in both our UK and Spanish coach businesses, with advanced sales higher than last year,” it said.

“Overall, we remain on course to deliver our profit, free cash flow and leverage targets for the full year.”