FlixBus buys Megabus Europe
Stagecoach Group plc announced yesterday the sale of the retail operations of its megabus Europe business to FlixMobility GmbH, the company behind long distance European coach operator FlixBus.
The retailing operations only relate to mainland Europe and includes the design of inter-city coach services; including their timetabling, co-ordination and marketing, as well as the pricing and sale of journeys on those services. The day to day operation and staffing of the coach services will remain the responsibility of megabus.
A spokesperson for megabus issued the following statement, ‘We have agreed the sale to FlixBus of the retailing part of that business. We will continue to operate a number of European inter-city coach services as a contractor to FlixBus and we look forward to building on our relationship with it.’
The sale of the megabus Europe retail operations is expected to be completed by 1 July 2016. The undisclosed amount for the sale will take the form of a loan note from FlixBus to Stagecoach at completion, which is not subject to any conditions or performance criteria which need to be fulfilled.
Stagecoach commented that they expect the loan note to be fully settled by the end of 2017 and to report a gain on disposal in respect of the sale in its consolidated financial statements for the year ending 30 April 2017.
In addition, to the sale, Stagecoach has agreed to dispose of a number of vehicles to FlixBus or its nominee, at a future date.
Existing customer bookings for megabus.com Europe journeys remain valid and these services are continuing to operate as normal.