FirstGroup PLC (FGP.L,FGROF.PK) announced the sale of its Wigan bus business to Stagecoach Group plc (SGC.L) for a consideration of 12.0 million pounds. The disposal is part of the Group's stated strategy to reposition its UK Bus division to focus on those areas that offer the greatest potential for growth.
Tim O'Toole, Chief Executive said: "The sale of our Wigan bus business marks continued progress in our programme of selected asset and business disposals as we review the scope and scale of our UK Bus portfolio and reposition it for the longer term. With a clear focus we are working through a detailed plan to recover performance in our UK Bus division and equip the business to achieve sustainable growth and improved returns."
The Wigan operations will become part of Stagecoach Manchester. Stagecoach expects the acquisition to be completed in early December 2012. Stagecoach Group plc said the business being acquired operates commercial bus services and a small number of school contracts, employing approximately 300 people. In the 12 months to 31 March 2012, the business had revenues of 13.2 million pounds, EBITDA of 2.2 million pounds and an operating profit of 1.5 million pounds.
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by RTT Staff Writer
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