FirstGroup, a U.K.-based passenger
transport group with operations in North America, entered into an
agreement to acquire Laidlaw International, the operator of
Greyhound Lines, for $3.6 billion in cash.
The deal was
approved by Laidlaw's board of directors, which is recommending to
shareholders that they take FirstGroup's offer to buy all
outstanding shares at $35.25 per share. The terms include the
assumption of $800 million of Laidlaw's debt.
In addition to
Greyhound, Laidlaw International owns the transportation operations
of Laidlaw Transit and Laidlaw Education Services. Laidlaw claims
to be North America's largest provider of school and intercity bus
transportation as well as a leading supplier of public transit
services.
FirstGroup calls
itself Britain's largest surface transportation company with annual
revenue of over $5.8 billion and 74,000 employees in the U.K. and
North America. FirstGroup, whose U.S. headquarters are in
Cincinnati, has three North American operations, including yellow
school buses (First Student), transit contracting and management
services (First Transit) and vehicle maintenance and ancillary
services (First Services).
According to Kevin
Benson, president and CEO of Laidlaw International, the
compatibility of the two companies rests in part on Laidlaw's
progress in improving its technology and developing better systems
of bus manufacture.
The two companies
have compatible corporate cultures, Benson said, particularly in
terms of their views of customer service. Benson also said there
are "considerable opportunities for savings and synergies."
To
contact reporter David Cogswell, send e-mail to [email protected].