National Express Group PLC
31 May 2000
NATIONAL EXPRESS GROUP PLC
£137 million acquisition in the USA
National Express is acquiring School Services & Leasing Inc. ('SSL'), the
second largest privately owned student transportation bus company in the USA,
for £136.7 million ($205 million ) in cash. The acquisition will be funded
through existing bank facilities. The transaction is scheduled to complete on
31st August, 2000, following receipt of Surface Transportation Board consent.
The acquisition is expected to be immediately earnings enhancing before the
amortisation of goodwill.
Proforma results for SSL for the year ended 31st December, 1999 show EBITDA of
£17.5 million ($26.3 million) and operating profit of £11.5 million ($17.3
million) on turnover of £66.7 million ($100 million). Audited net assets at
31st July, 1999 were £34.6 million ($51.9 million).
SSL is based in Kansas City, Kansas. Established in 1976 with 110 buses, it
now has over 3,100 vehicles, serving over 40 school boards across 8 states
from New Mexico to Massachusetts. SSL employs 4,000 people, including 3,600
drivers and attendants, and 54 million student trips are made on its services
each year.
The acquisition of SSL consolidates the Group's position as the third largest
student transportation operator in North America. The student transportation
division will now have almost 9,000 vehicles, employ over 10,000 people and
operate in 20 states, from California to Connecticut. SSL's operations will
be consolidated into the division's existing businesses based in Austin, Texas
reporting to Larry Durham, Chief Executive of National Express' North American
operations.
Commenting on the acquisition Larry Durham said:
'The acquisition of SSL opens up important new markets for us and consolidates
our position in the Mid West. The addition of SSL's team of professional
managers will add greater depth of operational experience and skill in that
region. I welcome SSL's employees to the Group and look forward to working
with them to achieve further growth through continuing to provide high quality
transportation services to our customers across North America.'
Phil White, Chief Executive of National Express said:
'The acquisition of SSL is another important step in consolidating our
position in the North American public transport market. Together with our
public transit bus operations we now have an annualised turnover of £330
million ($500 million) and employ over 16,000 people in the USA.'
For further information, please contact:
Phil White, Chief Executive
William Rollason, Finance Director
Helen McCorry, Group Communications Manager
National Express Group PLC 020 7529 2000
Nicola Marsden/ Steve Jacobs
Financial Dynamics 020 7831 3113
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