- Deal is a “significant milestone” for First Group and brings a new entrant to the London bus market, says KPMG
KPMG in the UK acted as lead corporate finance advisor to First Group plc on its sale of eight London bus depots in two transactions worth a total of £80 million which were announced today.
Five depots (with 494 vehicles and approximately 1,700 employees) will be sold to London bus operator Metroline which is owned by Comfort DelGro Corporation Limited, a Singapore-incorporated transportation company. The remaining three will be acquired by a new entrant to the London bus market, Australian transport operator Transit Systems Group, which will take over approximately 400 buses and 1,500 staff.
Commenting, Tim O'Toole, Chief Executive of FirstGroup said: "The sale of these operations marks further progress in our programme to reposition our UK Bus portfolio, recover performance and equip the business to achieve sustainable growth. Our strategy is to focus on those areas which offer us the greatest potential and, while we have been a key operator in London for many years, these sales allow us to focus our time and resources on the deregulated market outside of the capital."
Dr Ashley Steel, Global Chair for Transport at KPMG, said: “These transactions are a significant milestone in First Group’s UK bus transport strategy. They also confirm that London and its public transport market continues to be attractive to overseas investors, and bring a new entrant, Transit Systems Group, to the London market.”
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Notes to editors:
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