Stagecoach reaches inter-city coach sale agreement
Stagecoach has confirmed the future of the retailing activities of its inter-city coach businesses, megabus.com and Falcon.
Both megabus.com and Falcon are Stagecoach’s 100%-owned inter-city coach operations. In addition, Stagecoach has a joint venture, Scottish Citylink, with international transport group, ComfortDelGro. The joint venture is responsible for the Scottish Citylink express coach network and megabus.com branded services to, from and within Scotland.
Stagecoach and ComfortDelGro have now reached agreement for Stagecoach to sell the following businesses to Scottish Citylink:
- the megabus retail platform and customer-service business, which sells and markets inter-city coach services in England and Wales
- Falcon South-West, which retails tickets for the coach route between Plymouth and Bristol Airport
In return, Stagecoach’s share of the Citylink joint venture will increase from 35% to 37.5%.
Around 30 Stagecoach Group employees are expected to transfer to Scottish Citylink as part of the sale. There is no change to the operation of the inter-city coach services themselves.
Stagecoach Chief Executive, Martin Griffiths, said: “Inter-city coach has a positive future as a greener and better value alternative to the car and as the UK rail network continues to see rising fares and operational challenges.
“The agreement we have reached with ComfortDelGro will provide certainty for employees in these businesses, and ensure we can continue to benefit from future growth in the inter-city coach market through our increased share in the Scottish Citylink joint venture.”
On behalf of ComfortDelGro, Sean O’Shea, Chief Executive Officer for Metroline, said: “ComfortDelGro’s 20-year long relationship with Stagecoach in Scotland is set to expand and I look forward to working together to deliver great services for inter-city customers in England and Wales.”
The agreement is subject to certain conditions, and completion of the transaction is expected in mid-August 2022.
Stagecoach announced in December last year that it would sell the marketing, retail and customer service activities of three of its inter-city coach businesses to ComfortDelGro (CDG).