FirstGroup completes RATP London acquisition

FirstGroup has completed its acquisition of London bus operator RATP Dev Transit London Ltd and its subsidiaries.

The Acquisition sees First re-enter the London bus market and is part of its strategy of growing and diversifying its revenue base.

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 around 1,000 buses, a third of which are fully electric, and approximately 3,700 employees.

RATP London currently operates 83 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 around 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.