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LONDON - FirstGroup plc, a leading provider of public transport services, has successfully completed the acquisition of London bus operator RATP Dev Transit London Limited, commonly known as RATP London. The move marks FirstGroup’s strategic expansion into the London bus market, where RATP London holds approximately a 12% market share.
RATP London operates 83 route contracts for Transport for London (TfL) and possesses a fleet of around 1,000 buses, of which a third are fully electric. The acquisition includes ten depots located in Central and West London and brings approximately 3,700 employees into the FirstGroup fold.
The acquisition, announced on December 10, 2024, is anticipated to contribute annual revenues of £300-350 million to FirstGroup, with operating margins expected to align with historical London levels of around 6-7%. The company’s adjusted net debt is projected to be approximately £130-135 million by the end of the fiscal year 2025, considering this acquisition and the completion of the Matthews Coach (NYSE:TPR) Hire acquisition, as well as the near completion of the Group’s £50 million share buyback program.
FirstGroup’s entry into the London bus sector is a strategic move to diversify and grow its revenue base. The Group, listed on the London Stock Exchange (LON:LSEG) as LSE:FGP.L, reported revenues of £4.7 billion and transported almost 2 million passengers daily in the fiscal year 2024. With a commitment to zero-emission fleets by 2035 for its First Bus operations and support for the UK Government’s goal to phase out diesel-only trains by 2040, FirstGroup is positioning itself as a leader in sustainable public transport solutions.
This acquisition is based on a press release statement and is part of FirstGroup’s broader strategy to provide integrated, sustainable, and convenient transport services to its customers, thus contributing to economic, social, and environmental goals in the communities it serves.
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