Business

FlixBus owners ride with Greyhound when FirstGroup exits

File Photo: The bus will stop at Greyhound Bus Station in El Paso, Texas, USA on March 5, 2021. REUTERS / Jose Luis Gonzalez / File Photo

October 21, 2021

(Reuters) – British transportation company FirstGroup has sold its US intercity coach network Greyhound to FlixMobility in Germany after more than two years of attempting to offload its iconic brand.

The sale at a corporate value of approximately $ 46 million indicates that FirstGroup has withdrawn from its international operations. Earlier this year, it sold its US school bus and transit business to private-equity fund EQT, focusing on UK bus and train operations.

The company said in a statement Thursday that FirstGroup will receive a total of $ 172 million in cash from the transaction, some of which will be used to repay Greyhound’s debt and leases.

Holds some Greyhound assets and legacy liabilities, such as annuities and self-insurance.

Dallas-based Greyhound, commonly known in North America since its inception in 1914, was launched in May 2019 after fighting increasing pressure from low-cost carriers.

FlixMobility, owner of FlixBus, a European intercity bus service, said the acquisition would allow the company to combine its technology and shared mobility expertise with Greyhound’s national presence.

With 1,300 vehicles and 2,400 employees, Greyhound provides services that connect 1,750 destinations across North America.

The transaction will allow FirstGroup to reduce adjusted net debt from approximately £ 10 million to £ 20 million ($ 27.6 million), approximately £ 80 to 90 million lower than previously predicted.

($ 1 = 0.7246 lbs)

(Report by Yadarisa Shabong in Bangalore, edited by Anil D’Silva)



FlixBus owners ride with Greyhound when FirstGroup exits

Source link FlixBus owners ride with Greyhound when FirstGroup exits

Back to top button