Scottish transport operator FirstGroup has bought a business with a fleet of around 145 buses and coaches which provides school and private-hire services, the latest deal in its strategic acquisitions drive.
The Aberdeen-based company announced yesterday it had bought Lakeside Group, which operates in Shropshire and Cheshire.
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It is the second purchase unveiled this week by FirstGroup, which announced on Monday that it had bought London-based coach operator Anderson Travel.
FirstGroup said Lakeside Group comprises “well-recognised. local brands Lakeside Coaches, Merediths Coaches and A.T. Brown Coaches”.
It added: “Complementing the recent additions to the First Bus portfolio, this strategic acquisition will allow us to grow our coaching business and offers the potential to increase our presence in the West Midlands.
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“The acquisitions we have made in recent years, in line with our stated strategy to grow and diversify the First Bus portfolio, now represent combined annualised revenues of [circa] £100m and EBIT of [circa] £13m and we continue to evaluate a pipeline of organic and inorganic growth opportunities.”
FirstGroup noted Lakeside Group “operates a fleet of [circa] 145 buses and coaches of various sizes primarily from a central, owned depot in Ellesmere, Shropshire, and from five smaller depots – one owned in Shrewsbury and the others leased - in Shropshire, Telford and South Cheshire”.
It added: “The majority of Lakeside’s revenue is derived from school and private-hire contracts, with the remaining revenue coming from tours, a small local bus operation, under contract to Shropshire County Council, and B2B (business to business) operations.
"The business has grown significantly over recent years, both organically and inorganically, and has retained strong levels of profitability. For the year ended 31 March 2024, Lakeside delivered revenues of [circa] £12.5m and EBIT (earnings before interest and tax) of [circa] £2.5m.”
The Scottish company noted Neal Hall, managing director of Lakeside, will continue to manage the business on a day-to-day basis.
It added that Gareth Davies, owner of Lakeside, will continue to lead the business and will join First Bus to “support the ongoing development of its wider coaching strategy”.
Graham Sutherland, chief executive of FirstGroup, said: “The acquisition of Lakeside, a profitable business with excellent growth potential, builds on our recent acquisitions in First Bus. The addition to our portfolio will not only grow our position in adjacent services, but it will also allow us to enter new regions, which is key to the overall First Bus strategy.”
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