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Completion of RATP London acquisition

In brief · summary, not quotable

FirstGroup completes acquisition of RATP London, a major London bus operator with 12% market share and 1,000-strong fleet.

  • RATP London market share c.12%
  • RATP London fleet c.1,000 buses
  • RATP London employees c.3,700
  • TfL route contracts operated 83
  • Expected annual revenues (evolved portfolio) £300-350m
  • FY 2025 year-end adjusted net debt c.£130-135m
Full announcement

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FirstGroup plc (the `Group') is pleased to announce that it has completed its acquisition of London bus operator RATP Dev Transit London Limited and its subsidiaries (`RATP London') (the `Acquisition').

The Acquisition has facilitated the Group's entry into the London bus market with a strong position and supports the Group's strategy of growing and diversifying its revenue base.

As detailed in the Group's announcement on 10 December 2024, RATP London is one of the principal bus operators in London, with a c.12% market share. The operator has ten depots in Central and West London, a fleet of c.1,000 buses, a third of which are fully electric, and c.3,700 employees.

RATP London currently operates 83 Transport for London (`TfL') route contracts and as the contract portfolio evolves over the next five years annual revenues are expected to grow to £300-350m, with operating margins in line with historical London levels of c. 6-7%.

The Group anticipates a FY 2025 year-end adjusted net debt position of c.£130-135m reflecting the completion of the RATP London and Matthews Coach Hire acquisitions and the execution of the Group's £50m share buyback programme that is now expected to be substantially complete by the year end.

Contacts at FirstGroup: Marianna Bowes, Head of Investor Relations Stuart Butchers, Group Head of Communications corporate.comms@firstgroup.co.uk Tel: +44 (0) 20 7725 3354Contacts at Brunswick Group: Andrew Porter / Simone Selzer Tel: +44 (0) 20 7404 5959
Contacts at Panmure Liberum (Corporate Broker): Nicholas How / John More Tel: +44 (0) 20 3100 2000RBC Europe Limited (Financial Adviser and Corporate Broker): Philip Turville / James Agnew / Jack Wood Tel: +44 (0) 20 7653 4000

Notes

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.

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