4th Nov 2009 07:00
GO-AHEAD FORMS YELLOW SCHOOL BUS JOINT VENTURE
The Go-Ahead Group plc ("Go-Ahead") is pleased to announce that it has formed a new joint venture company (JV) to pursue potential opportunities for yellow school bus contracts in North America.
Go-Ahead will own 50% of the JV, with the other 50% held by Cook-Illinois Corp ("Cook-Illinois"). Cook-Illinois is an established, high quality school bus operator based near Chicago. The JV will be focused on new yellow school bus contracts outside Cook-Illinois' home market of Chicago and the surrounding area.
Keith Ludeman, Chief Executive of Go-Ahead, said: "This JV is an exciting new venture for Go-Ahead. It represents an excellent, low risk and financially disciplined way for us to gradually build an operation in this strategically attractive market. The North American yellow school bus market shares many of the same characteristics as our UK bus operations and we are delighted to be working with Cook-Illinois, one of the largest school bus fleet operators in the United States. We both believe passionately in running high quality operations with a strong local focus and identity. The JV will draw upon the expertise of both of our organisations to explore potential opportunities."
John Benish, Chief Operating Officer for Cook-Illinois, said: "Cook-Illinois and Go-Ahead share similar strategies and approaches to transportation. Both companies are committed to the safety of their passengers. Each company has used innovative strategies to solve environmental issues pertaining to transportation. Cook-Illinois has focused on a community based approach to student transportation since it began operating yellow school buses over 50 years ago. With the shortage of resources facing many school districts in this country, it is a perfect time to share our cost saving solutions. This joint venture will help to provide efficient, environmentally friendly transportation solutions to our customers while expanding into new markets."
At this stage, the JV does not operate any contracts and hence has no significant financial commitments.
Go-Ahead's strategy remains to provide quality, locally focused passenger transport services in high density, urban markets in the UK, without ruling out value-adding overseas opportunities. Go-Ahead is committed to maintaining strong financial discipline: strong balance sheet and cash flows, secure financing and maintenance of a progressive dividend policy.
Ends
For further information, please contact:
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The Go-Ahead Group Keith Ludeman, Group Chief Executive Nick Swift, Group Finance Director |
020 7821 3920 020 7821 3922 |
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Citigate Dewe Rogerson Michael Berkeley, Chris Barrie, Angharad Couch |
020 7638 9571 |
Notes to Editors
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Go-Ahead is one of the UK's leading providers of passenger transport services operating in the bus, rail and aviation services sectors. Employing around 27,000 people across the country, around 960 million passenger journeys are undertaken on our services each year. In addition to the travelling public, customers include the Department for Transport, Transport for London, local authorities, British Airports Authority and major airlines. For further information visit www.go-ahead.com Cook-Illinois is the largest family owned and operated school bus contractor in the United States, with over 50 years in the bus industry. It ranks fifth nationally in overall size and is within the top ten of all school bus contractors, operating 2,000 buses with over 200 school districts. The company operations are situated in and around the Chicago area. For further information visit www.cookillinois.com. |
The yellow school bus market in North America consists of approximately 450,000 vehicles, of which around 150,000 are operated by the private sector.
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