REG-FirstGroup Plc: Agreement to acquire York Pullman Bus Company

FirstgroupAnnouncement

26/01/2024 07:15

FIRSTGROUP PLC

agreement to acquire york pullman bus company

 
* 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 
* The Acquisition will enhance the First Bus operational footprint in the
North Yorkshire region and provide profitable growth opportunities in adjacent
services markets 
* 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.

 

 



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