15th Dec 2005 07:01
Stagecoach Group PLC15 December 2005 STAGECOACH GROUP PLC Acquisition of Traction Group Limited 15 December 2005 Stagecoach Group plc ("Stagecoach") is pleased to announce that on 14 December2005, it completed the acquisition of the entire share capital of Traction GroupLimited ("Traction"). The principal vendors are Mr Frank Carter, (who prior tothe acquisition was Chairman and Managing Director of Traction), two trusts infavour of members of Mr Frank Carter's family and a Traction employee shareownership trust. Traction is the sixth largest operator of bus services in the UK and is thelargest operator that was still privately owned. Traction's operations arecentred on South and West Yorkshire, Lincolnshire and Tayside. In its financialyear ended 31 December 2004, Traction reported turnover of £56.6million,operating profit of £2.5 million and gross assets of £50.5million. The consideration paid for the shares was approximately £26.0million, which wassatisfied by £21.5million in cash and the issue of 4,022,070 Stagecoach ordinaryshares of 12/19th pence each. Stagecoach has assumed Traction's net debt ofapproximately £11.0million. The consolidated net debt of Stagecoach willtherefore increase by approximately £32.5million as a result of the acquisition. Application has been made to the London Stock Exchange and UK Listing Authorityfor the admission to the Official List of the new ordinary shares and listing isexpected to become effective on 16 December 2005. The new ordinary shares willrank pari passu with the existing ordinary shares. Brian Souter, Chief Executive of Stagecoach Group plc, commented: "Theacquisition of Traction is consistent with our strategy for growth in our coreUK and North American markets, and follows the acquisition of Glenvale Transportearlier this year. "Traction is the largest of the remaining privately-owned UK bus operators. Weare excited by the prospects of acquiring Traction, and believe we can add valuethrough innovation, investment and by applying Stagecoach's operationalexpertise. "Stagecoach's investment in improved services and initiatives - includingKickstart, sector-leading telemarketing campaigns and online sales - is seeinglarge numbers of people return to the nation's buses and demonstrates ourability to deliver impressive growth." In the recently reported Stagecoach Group results for the six months ended 31October 2005, revenue in the UK Bus division was up 10.5%. - ENDS - CONTACTS: Stagecoach Group plcMartin Griffiths, Finance DirectorTelephone01738 442 111Steven Stewart, Head of Media & Public Affairs07764 774680 SmithfieldJohn Kiely020 7360 4900 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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