Stagecoach acquires Kelsian Group’s east London bus operations
Stagecoach, through its subsidiary, Stagecoach Bus Holdings Limited, has acquired the east London bus operations of Kelsian Group as well as its Lea Interchange depot for £20 million.
According to the Scottish transport group, the acquisition strategically fits with its existing operations in east and south-east London.
Stagecoach added that the Lea Interchange depot is well located near Stratford, which is one of the busiest stations in the UK.
The Lea Interchange depot, on behalf of Transport for London (TfL), operates 11 contracts using a fleet of nearly 150 buses.
The east London bus operations of Kelsian Group have an annual turnover of about £38 million.
According to Stagecoach, the acquired contracts have an acceptable expiry profile and there is scope to enhance operational performance and increase contract margins with the retendering of routes.
Comments on the acquisition of the east London bus operations
Martin Griffiths — Stagecoach Chief Executive, commenting on the acquisition of the east London bus operations of Kelsian Group, said: “We have an extensive track-record of operating high-quality and profitable bus services on behalf of Transport for London.
“This targeted acquisition provides operational and margin improvement opportunities that we have successfully delivered at our other London bus depots.
“We look forward to working with TfL to deliver even better bus links to local communities in east London and also helping support the Mayor’s drive to deliver a net zero transport system.”
Half of the consideration amount for the east London bus operations of Kelsian Group will be paid upon closing of the deal. It will be followed by £1 million per annum payable for ten years starting from the first anniversary after completion of the transaction.