The Aberdeen-based group has announced its second purchase of a coach operator in as many weeks with the acquisition of Shropshire-based Lakeside Group
FirstGroup says it is pleased to be able to announce that it has acquired Shropshire-based Lakeside Group, comprising well recognised local brands Lakeside Coaches, Merediths Coaches and A. T. Brown Coaches.
The combined Lakeside group of companies operates a fleet of around 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.
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 business to business operations.
FirstGroup says the business has grown significantly over recent years, both organically and inorganically, and has retained strong levels of profitability, delivering revenues of around £12.5m.
Managing Director of Lakeside Neal Hall will continue to manage the business on a day-to-day basis going forward, while owner Gareth Davies will continue to lead the business and will join First Bus to support the ongoing development of its wider coaching strategy.
“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,” the Group reports.
FirstGroup Chief Executive Officer Graham Sutherland 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.”
