REG-FirstGroup PLC: Strategic update - North American contract businesses

FirstgroupAnnouncement

16/12/2019 07:05

FirstGroup plc
Strategic update – North American contract businesses

The Board of FirstGroup (‘FirstGroup’ or the ‘Group’) has been clear
that its intent is to realise value for shareholders and that it will actively
manage the entire portfolio by all appropriate means.

Since his appointment as Chairman four months ago, David Martin has been
actively engaged across the entire portfolio, working with management and
supported by independent advisors, to review the various strategic options.

Following this review and having further validated whether the monetisation of
these businesses would deliver material value enhancement for all
shareholders, the Board has appointed advisors to formally explore all options
in respect of our North American contract businesses, First Student and First
Transit, including a potential disposal.

At our recent half-year results the Group updated on progress including the
strengthening of its Rail business with the addition of West Coast
Partnership, progressing the sale of Greyhound and the development of a
framework for the First Bus pension scheme. We are actively addressing the
cost base of First Bus through a comprehensive efficiency programme, the
results of which will be substantially more evident in the second half of the
year and beyond. Therefore, the Board determined that greater value will be
achieved by delivering this margin enhancement prior to any launch of a formal
sale process.

In the meantime, we continue to focus on the individual plans for each of our
businesses, ensuring that customer commitments, investments, as well as growth
and margin improvement plans are delivered.

We will keep the market updated on progress as appropriate.

Commenting, Matthew Gregory, Chief Executive said:  
‘We have taken a number of important steps that will enable a
rationalisation of the Group’s portfolio. Today’s announcement to formally
explore all options to maximise value from our North American businesses
reflects the resolute focus of the entire Board on realising value for all
shareholders.’

Contacts at FirstGroup:
Faisal Tabbah, Head of Investor Relations
Stuart Butchers, Group Head of Communications
Tel: +44 (0) 20 7725 3354

Contacts at Brunswick PR:
Andrew Porter / Simone Selzer, Tel: +44 (0) 20 7404 5959

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR
6 Annex 1R: 3.1.

FirstGroup plc (LSE: FGP.L) is a leading provider of transport services in the
UK and North America. With £7.1 billion in revenue and around 100,000
employees, we transported 2.2 billion passengers last year. Whether for
business, education, health, social or recreation – we get our customers
where they want to be, when they want to be there. We create solutions that
reduce complexity, making travel smoother and life easier.

We provide easy and convenient mobility, improving quality of life by
connecting people and communities.

Each of our five divisions is a leader in its field: In North America, First
Student is the largest provider of home-to-school student transportation with
a fleet of 43,000 yellow school buses, First Transit is one of the largest
providers of outsourced transit management and contracting services, while
Greyhound is the only nationwide operator of scheduled intercity coaches. In
the UK, First Bus is one of Britain's largest bus companies with 1.6 million
passengers a day, and First Rail is one of the country's largest and most
experienced rail operators, carrying 345 million passengers last year.

Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on
Twitter.



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