FirstGroup acquires York Pullman Bus Company
Mon, 29 Jan 2024 | BUSINESS SALE
Aberdeen-based transport firm FirstGroup has acquired York Pullman Bus Company in a deal that significantly expands the footprint of its First Bus division in North Yorkshire. York Pullman has a fleet of more than 130 vehicles and comprises five well-established coach services brands.
The company provides services including home-to-school and college-contracted operations and private hire services such as rail replacement buses. The company also operates several local bus routes for a number of local authorities, with these services said to be complementary to First Bus’ existing York operations.
In the year to December 31 2022, York Pullman reported approximately £10 million in revenue, with earnings before interest and tax standing at around £2 million. Upon the completion of the deal, FirstGroup anticipates a year-end adjusted net cash position of between £60 million and £70 million, with around £30 million of the group’s ongoing share buyback programme yet to be completed.
Following the acquisition, which is subject to regulatory approval, Managing Director Tom James will remain in his role and continue running York Pullman as a standalone operation. James will also reportedly contribute to developing the growth strategy of First Bus’ coach services, highlighting synergy benefits, with support from First Bus’ executive team.
Graham Sutherland, Chief Executive of FirstGroup, 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.”
Tom James added: “This is an important step in the development of York Pullman to build on its success and ensure its sustainability for the future within FirstGroup, whilst retaining its identity and core values.”
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