FlixBus owners ride with Greyhound on FirstGroup exit

Texas News Today

FILE PHOTO: The bus stops at Greyhound Bus Station on March 5, 2021 in El Paso, Texas, USA. Reuters / Jose Luis Gonzalez / File photo

21 October 2021

(Reuters) – British transport company Firstgroup has sold its American intercity coach network Greyhound in Germany to Flixmobility, more than two years after unloading 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The sale at a corporate value of approximately $46 million indicates that FirstGroup has withdrawn from its international operations.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 pay off Greyhound’s debts and leases.

Certain Greyhound assets and inheritance liabilities, such as annuities and self-insurance.

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

FlixMobility, owner of FlixBus, a European intercity bus service, said the acquisition will 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 throughout North America.

The transaction will allow FirstGroup to reduce adjusted net debt by around £10 million to £20 million ($27.6 million), about £80 to 90 million less than previously predicted.

($1 = 0.7246 pounds)

(Reporting by Yadarisa Shabong in Bengaluru, edited by Anil D’Silva)

FlixBus owners ride with Greyhound on FirstGroup exit

Source Link FlixBus owners ride with Greyhounds when FirstGroup rolls out

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