FirstGroup PLC on Thursday said it has acquired the UK sightseeing bus operations of RATP Developpement SA for around £17 million.
The Aberdeen, Scotland-based bus and rail transport provider said the buses operate under the Tootbus brand and are based in London and Bath.
As well as 63 buses, the operations also comprise a large freehold depot in Wandsworth, London and a leased depot in Keynsham, Bath, as well as approximately 190 employees.
The operations in Bath also include the Airdecker service from Bath to Bristol airport. The acquisition provides additional depot capacity and diversification in Bath, the company said.
FirstGroup said entering the sightseeing market in London will diversify the company’s businesses in the UK capital. It added that it plans to bid for additional Transport for London red bus routes out of the Wandsworth depot.
In 2023, Tootbus reported £15.9 million in revenue and an operating loss of £600,000.
FirstGroup said after a ‘minor initial loss’ during the first year, it expects the businesses to return to profit. The company anticipates approximately £30 million in annual revenue for the businesses by financial 2029.
‘The acquisition of the bus operations in London and Bath, in line with our UK-focused growth and diversification strategy, will allow us to further diversify and expand our footprint in two of our key markets,’ said Chief Executive Graham Sutherland.
‘The integration of the businesses will also create material operational and cost synergies and the opportunity to grow our London route portfolio over time.’
Shares in FirstGroup rose 2.3% to 188.10 pence on Thursday morning in London.
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