logo
Share SHARE
FONT-SIZE Plus   Neg

FirstGroup Announces Sale Of Wigan Bus Business To Stagecoach

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
A new study reveals that more large companies in the U.S. are run by men with the names John, Robert, William or James than the total number of women CEOs. For each women CEO of S&P 1500 companies there are four men CEOs named John, Robert, William or James, according to a study conducted by the New... Ahead of the Ferrari IPO this year, Fiat Chrysler Automobiles said it would sell more than the 10 percent stake it initially planned in the luxury car division's public debut as investor sentiment brightens and the need to stabilize stock prices gains importance. In a thumbs up for the Iceland bond market, investors strongly oversubscribed to a bench-marked bond offering by Arion Bank, as the Nordic island country warms up to possible easy access to international credit. Arion Bank issued bonds for 300 million euros and received bids of more than 675 million euros from about 100 investors. The bonds are 3-year instruments with a fixed 3.125 percent coupon.
comments powered by Disqus
Follow RTT