TRANSPORT firm First Group has agreed the sale of its US longdistance coaches business Greyhound Lines to European coach and rail group Flix Mobility for £125m.

The deal comes as part of First Group's move to focus on its UK transport business.

The British company will receive a total of $172m in cash from the deal, it said in a statement yesterday, a portion of which will be used to pay down Greyhound's liabilities and leases.

It will retain some properties and legacy liabilities of Greyhound, including pension and self-insurance.

Dallas-based Greyhound, a household name in North America since it was founded in 1914, was put up for sale in May 2019 as it battled with growing pressure from low cost airlines.

Flix Mobility, owner of European intercity bus service Flix Bus, said the purchase would help marry its technology and shared mobility expertise with Greyhound's nationwide presence.

Greyhound has a fleet of 1,300 vehicles and 2,400 employees, providing services connecting 1,750 destinations across North America.

The deal will help First Group cut its adjusted net debt to about £10m to £20m, about £80m to £90m lower than an earlier forecast.

Reuters

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