£10m turnover bus company acquired by multi-national transport group
Transport operator, FirstGroup plc, has agreed to acquire York Pullman Bus Company Ltd, which comprises five coach services brands.
York Pullman has a strong presence in York and surrounding towns in North Yorkshire and for the year ended 31 December 2022 it reported revenues of about £10m and EBIT of around £2m.
It provides home-to-school and college contracted services and private hire operations including rail replacement services, and operates a small number of local bus routes on behalf of several local authorities, complementary to the operations of First Bus in York.
It has been trading since 1926 and has a mixed fleet of more than 130 vehicles serving a broad range of customers.
Graham Sutherland, FirstGroup chief executive officer said: “A key pillar of our strategy is to grow and diversify our portfolio.
“The acquisition of York Pullman, a long-established, high-performing business fits well with our strategy as it will both enhance the First Bus operational footprint in North Yorkshire and expand our adjacent services business, where we are looking to grow our presence.”
Tom James, managing director of York Pullman, will remain with the company as managing director and continue to run it on a standalone basis, as well as contributing to the development of the First Bus coach services growth strategy.
He said: “This is an important step in the development of York Pullman to build on its success and ensure its sustainability for the future within FirstGroup, while retaining its identity and core values.”
Following the completion of the acquisition the FirstGroup anticipates its FY 2024 year-end adjusted net cash position will be £60-70m, with about £30m of an ongoing share buyback programme still to be completed.
