Firstgroup buys RATP's UK sightseeing bus operations in £17m deal
Public transport operator FirstGroup Plc said on Thursday that it has acquired the UK sightseeing bus operations of RATP Développement for roughly £17m as part of an effort to grow and diversify its First Bus business in two key markets.
Firstgroup said the business, currently operating under the Tootbus brand, includes 63 buses, a freehold depot in Wandsworth, a leased depot in Keynsham, and around 190 employees.
FirstGroup said the deal would provide further diversification in the capital, where it is one of the five main sightseeing operators, and additional depot capacity in Bath. The Wandsworth site will also support bids for new Transport for London bus routes.
The FTSE 250-listed firm expects the business to record a small loss in its first full year before returning to profit, with annual revenues of around £30m anticipated by FY29, supported by growth in TfL contracts.
Firstgroup added that the acquisition will be funded from existing cash reserves, with the group now forecasting adjusted net debt of £140m-£150m at the end of FY26.
Chief executive Graham Sutherland said: "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. The integration of the businesses will also create material operational and cost synergies and the opportunity to grow our London route portfolio over time."
Reporting by Iain Gilbert at Sharecast.com
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