REG - Mobico Group PLC - Completion of North America School Bus sale

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RNS Number : 0153R  Mobico Group PLC  15 July 2025

15 July 2025

MOBICO GROUP PLC

("Mobico" or the "Group")

Completion of North America School Bus sale

 

●     Net upfront  proceeds from the sale of $364m (£273m)

●     FY 25 covenant gearing expected to be reduced to approximately
2.5x as at 31 December 2025

●     Ample liquidity with no significant debt maturities for over 24
months

●     No change to FY 25 Adjusted Operating Profit guidance

●     HY 25 results to be published on 9 September 2025

 

On 25 April 2025 Mobico announced that it had agreed to sell its North America
School Bus business ("School Bus") to I Squared Capital for an enterprise
value of up to $608 million (~£457 million(1)) (the "Transaction").

On 8 July 2025 the US Surface Transportation Board ("STB") approved and
authorized the Transaction.  The STB approval was the last condition to
closing and accordingly on 14 July 2025 the Transaction closed.

Net upfront proceeds(2) received on closing were $364m (£273m(1)) and will be
used to reduce the Group's debt (including various leasing obligations). In
addition, there is a $70m earn out arrangement contingent on School Bus
achieving certain revenue, EBITDA and free cash flow related targets.

As noted in our FY 24 results announcement, the final School Bus balance sheet
position at closing will result in a further impairment and the
reclassification of the relevant foreign exchange and net investment hedge
reserves. This will result in a non-underlying charge in the Group's HY 25
results which will be announced on Tuesday, 9 September.

The Group continues to have strong liquidity with no significant debt
maturities due until the second half of 2027 with the sale of School Bus
providing sufficient proceeds to cover those maturities. The increased
financial flexibility the transaction provides, combined with ongoing
operational improvements, will enable the Group to focus on its objective to
de-leverage.

Excluding any contribution from School Bus for the period of the Group's
ownership in FY 25, the Group continues to expect FY 25 Adjusted Operating
Profit to be in the range £180m - £195m(3).

 

1.      Translated illustratively at a GBP/USD rate of approximately 1.33
based on the rate as at close of business on 24 April 2025. Final GBP proceeds
will be dependent on the unwinding of associated hedges, with the Group well
hedged for GBP/USD movements.

2.      Net upfront proceeds for covenant deleveraging reflects initial
cash received plus amounts paid down on closing in relation to elements of the
Group's covenant debt less contingent financial adviser fees.  In addition to
the pay down of covenant debt other debt like items such as deferred capital
expenditure and lease obligations were discharged on closing reducing the
Group's total debt. Net upfront proceeds does not include the earn-out amount
and is subject to confirmation via a customary post-close completion accounts
mechanism.

3.      School Bus will be reported as an asset held for sale in the Half
Year 2025 results.

 

For further information, please contact:

Mobico Group PLC

 Brian Egan/Michael Barker  +44 (0)121 803 2580

 

Headland

 Stephen Malthouse     +44 (0)7734 956201
 Matt Denham           +44(0)7551 825496

About Mobico Group

Mobico is a leading, international shared mobility provider with bus, coach
and rail services in the UK, North America, continental Europe, North Africa
and the Middle East.

Notes

1.   Legal Entity Identifier: 213800A8IQEMY8PA5X34

2.   Classification: 3.1 (with reference to DTR6 Annex 1R)

 

 

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