FirstGroup plc has announced that it has signed an agreement to acquire RATP Dev Transit London Limited and its subsidiaries from RATP Développement SA for an enterprise value of £90 million.
The acquisition will see FirstGroup enter the London bus market with RATP holding a 12% market share.
RATP’s London assets include:
- 10 depots across Central and West London (four owned and six leased)
- 1,000 buses of which a third are fully electric
- 3,700 employees over 80% of whom are drivers
- 90 Transport for London (‘TfL’) route contracts, typically of seven-year term; (weighted average remaining contract life of 3.3 years)
- Revenues of £271m for the year ended 31 December 2023
The acquisition will be financed with £45m from the Group’s existing cash reserves and the assumption of RATP London’s asset backed vehicle finances leases.
The agreement is subject to French government approval and is conditional on Transport for London (TfL) consent to the change of control.
FirstGroup anticipates completion of the acquisition in H1 Calendar Year 2025.
FirstGroup chief executive officer Graham Sutherland said: “This is a significant acquisition for the Group that will diversify our portfolio and materially grow our earnings in the medium term.
“It allows us to enter the London bus market at scale and will also bolster our credentials as we participate in future franchising opportunities across the UK.
“We look forward to continuing to build on our relationship with TfL and welcoming RATP London’s employees into the Group, to continue the transformation of the business and to capitalise on the growth potential in the London market.”
