Stagecoach Group PLC (SGC) - Acquisition
RNS Number : 8321Q
Stagecoach Group PLC
12 November 2012
12 November 2012
Stagecoach Group plc
Acquisition of bus operations in Merseyside, Cheshire and North Wales
Stagecoach Group plc ("Stagecoach") is pleased to announce that Glenvale
Transport Ltd, a wholly owned indirect subsidiary of Stagecoach, has agreed to
acquire certain businesses and assets of subsidiaries of FirstGroup plc
("First") for a consideration of £4.5 million.
The businesses being acquired operate commercial and tendered bus services in
Chester, Wrexham and Birkenhead, employing approximately 290 people.
In the 12 months to 31 March 2012, the business had revenues of £11.9 million,
EBITDA of around £1.7 million and an operating profit of around £0.6 million.
The purchase includes around 110 vehicles, as well as the owned depot site at
New Chester Road, Rock Ferry, Birkenhead; the owned depot facility at
Liverpool Road, Chester; and a leased out-station facility at Rhosddu
Industrial Estate, Rhosddu, Wrexham.
The acquisition will allow Stagecoach to expand its successful bus operations
in the North West where our Merseyside and South Lancashire business already
operates more than 300 buses and employs more than 900 staff.
The operations will become part of Stagecoach Merseyside and South Lancashire,
which carries 33 million passengers a year and is led by Managing Director
Staff will transfer to Stagecoach's Glenvale Transport Ltd business under TUPE
Stagecoach expects the acquisition to be completed in December 2012 or January
Les Warneford, Managing Director of Stagecoach UK Bus, said: "This acquisition
will extend our operations in the north west of England, particularly in
Merseyside. We believe there is significant scope to develop these businesses
and improve their financial performance by investing in the quality of the bus
fleet, as well as offering customers our good value fares and attractive
Investors and analysts
Martin Griffiths, Finance Director
Ross Paterson, Director of Finance & Company Secretary 01738
Steven Stewart, Director of Corporate Communications 07764
This information is provided by RNS
The company news service from the London Stock Exchange
ACQUASWRUOAAAAA -0- Nov/12/2012 07:00 GMT
Press spacebar to pause and continue. Press esc to stop.