Stagecoach spends £12m on Wigan service
STAGECOACH has bought rival transport operator First’s Wigan bus business for £12m.
The division, which operates public services and school contracts, employs 300 people.
In the year to March 31 it made an operating profit of £1.5m on revenues of £13.2m. Earnings before interest, tax, depreciation and amortisation were £2.2m.
The acquisition, conducted through Stagecoach’s Greater Manchester Buses East subsidiary, includes the Locket Road depot, as well as some leased premises in Wigan bus station, staff facilities and approximately 120 vehicles.
About 20 of the vehicles are owned by Transport for Greater Manchester, mostly as part of school contract operations.
Stagecoach said the deal will allow it to expand its Greater Manchester business, where it already operates around 630 buses and employs 1,850 staff. The Wigan operations will become part of Stagecoach Manchester, led by managing director Chris Bowles. The deal should complete in early December.
Les Warneford, managing director of Stagecoach UK Bus, said: “We have a strong track-record of attracting more people to bus travel and these new operations will expand our successful high-quality operations in other parts of Greater Manchester.
“We will continue to focus on providing customers with the best value fares of any major bus operator in the UK, investing in our networks and delivering punctual and reliable services. Our people are central to our growth plans and we look forward to welcoming our new employees to the company.”
First said it had sold the business because it was only focusing on areas that offer the “greatest potential for growth”
Chief executive Tim O’Toole said: “The sale of our Wigan bus business marks continued progress in our programme of selected asset and business disposals as we review the scope and scale of our UK Bus portfolio and reposition it for the longer term.
“With a clear focus we are working through a detailed plan to recover performance in our UK Bus division and equip the business to achieve sustainable growth and improved returns.”
