Stagecoach buys FirstGroup NW bus operations
STAGECOACH subsidiary Glenvale Transport has acquired the businesses and assets of subsidiaries of FirstGroup in Merseyside, Cheshire and North Wales for £4.5m.
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, the business had revenues of £11.9m, EBITDA of around £1.7m and an operating profit of around £600,000.
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.
Stagecoach said the acquisition will allow it to expand its bus operations in the North West, where its Merseyside and South Lancashire business already operates more than 300 buses and employs more than 900 staff.
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.”
The operations will become part of Stagecoach Merseyside and South Lancashire, which carries 33 million passengers a year.
Stagecoach expects the acquisition to be completed in December 2012 or January 2013.
