FirstGroup the U.K.'s biggest train operator, has completed its $3.4 billion purchase of Laidlaw, operator of Greyhound coach lines and yellow US school buses.
FirstGroup Plc said its purchase of Laidlaw International Inc., the largest operator of America's yellow school buses, will cost $200 million less than anticipated due to strong cash flows at the U.S. operation.
In a trading update to the stock exchange, the Aberdeen- headquartered transport giant also disclosed that buoyant rail revenues helped it to make a "good start" to its financial year.
Leadership position
The Scottish company has agreed to a package of measures, including the sale of 3 percent of of the combined firm's 62,000-strong fleet of yellow buses.
Moir Lockhead CEO of FirstGroup said: "The buying of Laidlaw moves us really to a leadership position in North America.”
FirstGroup’s train franchises include First Great Western and First ScotRail.
In the six month to September 30, its rail division grew 9 percent.
It has already begun a strategic review of Greyhound, which operates services in the US and Canada and represents about 10 percent of the group's underlying profits.
This could lead to a sale of the Greyhound business.
October 2 2007
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