FirstGroup Signs Agreement To Buy Ensign Bus Company

FirstGroup plc (FGROY.PK,FGROF.PK,FGP.L), on Wednesday, announced signing of an agreement to purchase Ensign Bus Co. Ltd.. The acquisition of the Ensignbus business will not only provide a number of synergies and value accretive growth opportunities in the B2B and bus vehicle dealership markets, but it will also enhance the Group's local commercial bus operations in Essex, the company said.

Ensignbus' commercial bus operations comprise two B2B segments that include rail replacement and private hire contract operations and a local bus route network complementary to First Bus's operations in Essex. The Ensignbus specialist heritage fleet is excluded from the transaction.

In addition to its commercial operations, Ensignbus has a vehicle refurbishment and re-sale business that purchases used vehicles and refurbishes to modern standards before re-selling.

If the acquisition completes before the Group's FY 2023 year end, the Group anticipates a year end adjusted net cash position, pre IFRS16 and excluding ring fenced cash, of £70 million - £80 million, reflecting the ongoing buyback programme and the timing of net capital expenditure and working capital flows.

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