Stagecoach set to buy Preston Bus

TRANSPORT giant Stagecoach looks set to swoop for a second North West bus operator.

The Scottish company has a deal in place to buy Lancashire’s Preston Bus, one of its key rivals in the city.

In August Stagecoach North West bought 22 vehicles and a number of routes around Manchester from family-owned business R Bullock.

A statement from Stagecoach said:”We can confirm that Stagecoach has reached provisional agreement to purchase Preston Bus.

“The deal is subject to the approval of employee shareholders and the completion of a final legal contract.  Discussions may or may not lead to a completed deal and we will issue any further update as appropriate.”

Preston Bus, which is owned by past and present employees and operates 120 buses, informed staff of the pending deal at a meeting this week. It is understood Preston Bus approached Stagecoach over the deal.

The business was formed in 1986 to take over Preston Borough Council’s transport department. In 1993 the council sold the business to its staff.

Most recently filed accounts at Companies House, for the year to April 2007 reveal that Preston Bus made an operating profit of £402,000 on turnover of £11.1m.

In the directors’ report the company said profitability was being affected by fluctuations in fuel costs, increased competition from a rival operator and personal injury claims after accidents involving its vehicles. The company currently has around 300 staff.

Shareholders will vote on the deal on January 22.