FlixMobility GmbH reached an agreement to acquire Greyhound Lines, Inc from FirstGroup plc (LSE:FGP) for approximately $200 million on October 21, 2021. As reported, the transaction will result in a cash consideration to FirstGroup plc of $172 million, comprising $140 million paid initially, with $32 million in unconditional deferred consideration paid in instalments over eighteen months. Under the transaction, FirstGroup plc will sell its US Greyhound operating business (including its vehicle fleet, trademarks, and certain other assets and liabilities) for an enterprise value on a debt-free / cash-free basis of approximately $46 million plus FlixMobility will take on cash on Greyhound's balance sheet of $108 million and will also assume approximately $14 million in debt and debt-like items of Greyhound. A further $1.5 million may also become payable contingent on specific agreement of a particular property lease. Greyhound-related property holdings in the US with an aggregate estimated net market value of approximately $176 million are not part of the transaction with FlixMobility and will be retained by FirstGroup. FlixMobility entered into lease agreements to use these retained properties as part of Greyhound's future operations at market rental levels. FirstGroup intends to monetise all of these retained properties over time to further optimise net proceeds. In addition to the Retained Properties, FirstGroup will also retain certain other Greyhound liabilities, including Greyhound's self-insurance reserve liabilities up to the date of closing, the Greyhound defined benefit pensions schemes, finance leases and certain environmental and other liabilities and costs. Greyhound's activities in Canada do not form part of the transaction

For the 52 weeks to March 27, 2021, Greyhound Lines, Inc. reported revenue of $422.6 million, EBITDA of $37.4 million and an adjusted operating profit of $1.8 million. The gross assets the subject of the transaction as at March 27, 2021 were $193.8 million. The transaction is not subject to any closing conditions and will complete on October 21, 2021. The $140 million of Greyhound initial cash proceeds will be retained by the Group to support the close-out of the legacy liabilities, and related net costs, settle the finance leases with discharge of the remaining pension liabilities to follow in due course. The balance of the property proceeds and deferred consideration resulting in approximately $178 million in net value for the Group being realised over time, which may be considered for potential supplementary returns to shareholders or for other opportunities in future. Eduard van Wyk and Bertie Whitehead of Goldman Sachs International acted as sole financial advisors and joint corporate brokers to FirstGroup. Phillip R. Mills, Ajay B. Lele, rian D. Hirsch, Lawrence R. Plotkin, William A. Curran, Ronan P. Harty, and Robert F. Smith. of Davis Polk & Wardwell LLP acted as legal advisors to FirstGroup. Covington & Burling LLP act as a legal advisor to FlixMobility GmbH.

FlixMobility GmbH completed the acquisition of Greyhound Lines, Inc from FirstGroup plc (LSE:FGP) in October 2021. Andrew Jolly of Slaughter and May acted as legal advisor to FirstGroup.