Tuesday 9
April 2013
As part of
FirstGroup's stated strategy to reposition its UK Bus division to focus on
those areas that offer the greatest potential for growth, it has today
announced the sale of eight of its London bus depots.
The bus
depots at Alperton, Greenford, Hayes, Uxbridge and Willesden Junction, along
with 494 vehicles and approximately 1,700 employees, will transfer to Metroline
on completion of the sale for a gross consideration of £57.5m. Metroline is an
existing London bus operator and wholly-owned subsidiary of Comfort DelGro
Corporation Limited, a Singapore-incorporated transportation company.
The bus
depots at Atlas Road, Lea Interchange and Westbourne Park, along with
approximately 400 vehicles and 1,500 employees, will transfer to Transit
Systems Group, an Australian transport operator, on completion of the sale for
a gross consideration of £21.3m.
Both
disposals are subject to the necessary regulatory approvals including
contractual obligations with Transport for London.
Commenting,
Giles Fearnley, First’s Managing Director UK Bus, 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 revenue and patronage growth.
Our strategy is to focus on those areas of the country which offer the
greatest potential and while we have been a key operator in London for many
years, our focus going forward is on the deregulated market outside of the
capital.
“Today’s
decision is a business driven one and does not reflect on the effort,
commitment or individual performance of our employees in London and we will be
supporting them fully as they transfer to their new employers. Over the years we have enjoyed a constructive
relationship with Transport for London and look forward to working closely with
them to ensure this transfer goes ahead as smoothly as possible.”
