13th Jul 2005 07:00
Stagecoach Group PLC13 July 2005 Acquisition of Glenvale Transport Limited 13 July 2005 Stagecoach Group plc ("Stagecoach") is pleased to announce that on 12 July 2005,it completed the acquisition of the entire share capital of Glenvale TransportLimited ("Glenvale"). Glenvale operates local bus services in Merseyside. The Company was formed inJuly 2001 as a result of a management buy-in of Gillmoss bus depot from Arrivaplc. Glenvale now operates from two depots in North East Liverpool and has anannualised turnover of approximately £25 million. The consideration paid for the shares was £3.4 million in cash, and Stagecoachhas assumed Glenvale's net debt of £7.8 million. The consolidated net debt ofStagecoach will therefore increase by £11.2 million as a result of theacquisition. In addition, Stagecoach intends to modernise Glenvale's fleet ofvehicles, which will result in some additional capital expenditure during thefinancial year ending 30 April 2006. Brian Souter, Chief Executive of Stagecoach commented: "Glenvale is asubstantial independent city-centre bus operator, and it is an excellentstrategic fit with Stagecoach's successful UK Bus division. We are excited bythe opportunities to grow revenue and improve profitability at Glenvale throughinnovation, investment and by applying Stagecoach's operational expertise.Stagecoach has demonstrated its ability to deliver impressive growth in its UKBus division as a result of initiatives including Kick Start, sector-leadingtelemarketing campaigns and online sales. In our recently reported results forthe year ended 30 April 2005, turnover in our UK Bus division was up 10.8%." CONTACTS: Stagecoach Group plc Martin Griffiths, Finance Director on 01738 442 111 Smithfield John Kiely on 020 7360 4900 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SGC.L