FirstGroup has completed its acquisition of London bus operator RATP Dev Transit London and its subsidiaries. The Group says the acquisition has facilitated its re-entry into the London bus market in a strong position, and supports its strategy of growing and diversifying its revenue base.
The former RATP London operation has an approximately 12% market share in the capital, with 10 depots in Central and West London, a fleet of around 1,000 buses, a third of which are fully electric, and some 3,700 employees. RATP London currently operates 83 Transport for London route contracts and the company believes that as the contract portfolio evolves over the next five years annual revenues will grow to between £300m and £350m, with operating margins in line with historical London levels of 6 to 7%.
RATP says it chose to divest itself of its London operations as part
of a strategic evolution, enabling a sharper focus on its urban rail strategy, in particular driverless metro and high-capacity commuter rail, and in markets where the company has a significant multimodal presence.
“As per our commitment at the start of this sale process, we have remained focused on maintaining premium service quality and ensuring seamless continuity and stability for all stakeholders, including employees, clients, and passengers. We sincerely thank all RATP Dev Transit London teams for their dedication and wish them continued success under this new leadership” stated Mehdi Sinaceur, Deputy CEO and member of the RATP Dev Executive Board.
