FlixBus owner acquires Greyhound from First
FlixMobility, owner of FlixBus and FlixTrain brands, has acquired Greyhound Lines from FirstGroup. The iconic brand is considered the largest provider of long-distance bus transportation in the United States.
The operation was sold for an enterprise value on a debt-free/cash-free basis of c.$46m plus unconditional deferred consideration of $32m with an interest rate of 5% per annum.
The FlixBus Global network serves over 2,500 destinations in 36 countries outside the U.S. with 400,000 daily connections. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year.
The sale of Greyhound follows the sale of First’s two other American operations last year. In April 2020, First sold its First Student and First Transit operations for £3.3bn.
“The sale of Greyhound to FlixMobility is part of our portfolio rationalisation strategy to refocus FirstGroup as a UK public transport leader” – David Martin, Executive Chairman, FirstGroup
David Martin, Executive Chairman, FirstGroup, said: “The sale of Greyhound to FlixMobility is part of our portfolio rationalisation strategy to refocus FirstGroup as a UK public transport leader. The strength of Greyhound is its people, and I would like to thank them for their unwavering commitment to their customers and communities. As part of FlixMobility, I am confident that Greyhound will be well placed to continue to grow and develop their iconic services for many years to come.”
FlixMobility was started in Germany in 2013 by Jochen Engert, Daniel Krauss and André Schwämmlein to deliver a revolutionary means of travel that combined technological advances, e-commerce capabilities and sustainable transportation. FlixBus was launched in the UK in July 2020, where it continues to grow. The UK is an integral part of FlixBus’s global growth agenda, the company’s goal is to provide the largest coach network in the country by 2025.
André Schwämmlein, Founder and Chief Executive Officer of FlixMobility, said: “Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. A compelling offering will draw significantly more travellers away from private cars to shared coach mobility. Together, FlixBus and Greyhound will be better able to meet this increased demand. As our business continues to recover from the effects of the pandemic, we will replicate the success that we have already achieved in 36 countries outside of the US with our innovative and customer centric approach.”