Go-Ahead group has acquired FirstGroup’s Northumberland Park bus depot in North-East London.
The deal has a gross cash consideration of £14m, with the transaction to be completed on March 30, 2012. The acquisition increases Go-Ahead’s share of the London market from 22% to 23%.
The business has around 400 employees and a fleet of 130 buses, operating 13 Transport for London contracts and a number of school contracts. The annual turnover of the business is around £24.5m.
Giles Fearnley, First UK Bus MD, said: “The sale marks further progress in our ongoing programme to pursue selective asset and business disposals as we review the scope and scale of our business and position our UK Bus division for the longer term.
“We remain focused on developing the opportunities which exist to transition to increased growth within our networks through targeted investment in staff, systems, new vehicles and technology while retaining our strong cost discipline.”
David Brown, Go-Ahead Group CEO, said: “We have great confidence in the London market and our management team in London. This acquisition provides the opportunity to run in a new area of the capital.
“We look forward to working with the Northumberland Park team to build on their success and to continue to deliver a good service to passengers in this area of London on behalf of TfL.”
The depot will become part of Go-Ahead London, under the leadership of MD John Trayner.