FIRSTGROUP PLC
agreement to acquire york pullman bus
company
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Agreement
to acquire York Pullman Bus Company Ltd, a high-performing operator
of coaches and buses, providing contracted and private hire
services in areas across North Yorkshire from several depot
locations
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The
Acquisition will enhance the First Bus operational footprint in the
North Yorkshire region and provide profitable growth opportunities
in adjacent services markets
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Completion
of the Acquisition is expected in the next few weeks subject to
customary regulatory review
FirstGroup
plc (the `Group') is pleased to announce that it has signed an
agreement to acquire York Pullman Bus Company Ltd (`York Pullman'), a high-performing business
comprising five well-established coach services brands (the
`Acquisition').
York Pullman has a strong presence in regional and adjacent
services operations in York and surrounding towns in North
Yorkshire. The Acquisition plays strongly into the Group's
strategy, providing profitable growth opportunities in adjacent
services contracted and commercial markets, with the ability to
develop this into other locations across the UK.
York Pullman 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 a mixed fleet of more than 130 vehicles
with varying passenger capacity which has enabled it to build a
broad range of customers. For the year ended 31 December 2022, York
Pullman reported revenues of c.£10m and EBIT of
c.£2m.
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, with synergy benefits and support from the First
Bus executive team.
Following
the completion of the Acquisition the Group anticipates that its FY
2024 year-end adjusted net cash position will be £60-70m, with c.£30m of the ongoing share buyback
programme still to be completed.
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."
Legal
Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as
per DTR 6 Annex 1R: 3.1.
Contacts
at FirstGroup:
Marianna
Bowes, Head of Investor Relations
Stuart
Butchers, Head of Corporate Communications
corporate.comms@firstgroup.co.uk
Tel: +44
(0) 20 7725 3354
|
Contacts
at Brunswick Group:
Andrew
Porter / Simone Selzer
Tel: +44
(0) 20 7404 5959
|
|
|
Contacts
at Liberum Capital Limited:
Nicholas
How / John Fishley
Tel: +44
(0) 20 3100 2000
|
Contacts
at RBC Europe Limited:
James Agnew
/ Jamil Miah
Tel: +44
(0) 20 7653 4000
|
About
FirstGroup
FirstGroup
plc (LSE: FGP.L) is a leading private sector provider of public
transport services. With £4.8 billion in revenue and around 30,000
employees, we transported more than 1.8m passengers a day in 2022/23. We create
solutions that reduce complexity, making travel smoother and life
easier. Our businesses are at the heart of our communities and the
essential services we provide are critical to delivering wider
economic, social and environmental goals. Each of our divisions is
a leader in its field: First Bus is the second largest regional bus
operator in the UK, serving two-thirds of the country's 15 largest
conurbations with a fleet of more than 4,500 buses, and carrying
more than a million passengers a day. First Rail is the UK's
largest rail operator, with many years of experience running
long-distance, commuter, regional and sleeper rail services. We
operate a fleet of more than 3,500 locomotives and rail carriages
through three management fee-based train operating companies
(Avanti West Coast, GWR, SWR) and two open access routes (Hull
Trains and Lumo). We are formally committed to operating a
zero-emission First Bus fleet by 2035, and First Rail will help
support the UK Government's goal to remove all diesel-only trains
from service by 2040. In February
2023 FirstGroup was named as one of the world's cleanest 200
public companies for the fourth consecutive year by sustainable
business media group Corporate Knights in partnership with US
not-for-profit organisation, As You Sow. We provide easy and
convenient mobility, improving quality of life by connecting people
and communities. Visit our website at www.firstgroupplc.com and
follow us @firstgroupplc on X.