Passenger transport group Stagecoach is to acquire the Wigan bus business and assets from First Manchester, part of FirstGroup.
Stagecoach is paying £12m for a business which operates both commercial bus services and a small number of school contracts.
In the 12 months to the end of March the business had revenues of £13.2m, made earnings before interest, tax, depreciation and amortisation of £2.2m and an operating profit of £1.5m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The acquisition will allow Stagecoach to expand its bus operations in the Greater Manchester region, where it already operates around 630 buses and employs 1,850 staff.
The acquired business employs around 300 workers, and these will transfer to Stagecoach's Greater Manchester Buses East Limited business under Transfer of Undertakings (Protection of Employment) arrangements.
Stagecoach expects the acquisition to be completed in early December 2012.
JH
-
8 of the best converted properties for sale nowThe best converted properties for sale – from an apartment in the former Hartley’s Jam factory on London’s Southbank, to a converted 18th-century mill in Itteringham, Norfolk
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
