Management & Operations

Ryder Sells Bus Businesses to UK’s FirstGroup

Posted on July 23, 1999

Ryder System has announced that it has signed an agreement to sell its Ryder Public Transportation Services (RPTS) Group to FirstGroup plc for $940 million in cash. Ryder expects to realize net after-tax proceeds of $670 million, and will use much of it to retire debt and focus on its leasing and logistics businesses, analysts said. RPTS consists of Ryder Student Transportation Services, the second-largest student transport provider; Ryder/ATE, the second-largest U.S. provider of public transit management and operations services; and Ryder/MLS providing fleet management and maintenance services for municipalities, transit authorities, public utilities and other companies. FirstGroup is a diversified multimodal public transport operator. Its interests lie mainly in the UK but recently it set up a bus joint venture in Hong Kong, called New World First. That venture won a £80 million (US$140 million) contract to run bus services in Hong Kong; it also plans to build or buy 600 new buses over the next two years. FirstGroup was also selected as preferred bidder for the £50 million (US$83 million) City of Edinburgh Rapid Transit, which will involve the construction of a 9km (5 mi) guided bus-way between the airport and the city center. The company acquired Great Western Trains for £148 million, a controversial deal because it is expected to generate a huge profit for the former British Rail managers who bought Great Western, one of the train operating companies established as apart of British Rail’s privatization. FirstGroup is also actively seeking other bus, train and airport acquisitions in North America and mainland Europe. It reportedly is under pressure from shareholders to maximize non-UK opportunities since revenues within its home country have been flat.

View comments or post a comment on this story. (0 Comments)

More News

HNTB names Slaughter Sr. VP

Transit/rail market sector leader recognized for delivering solutions to clients, serving in industry leadership roles, and advancing transit thought leadership.

DART's 'Go' services reimagining public transit

Powered by technology, these new services include app based trip-planning and ticketing, microtransit, and dynamic carpooling.

Calif.'s AVTA taps new executive director/CEO

Macy Neshati, whose tenure at AVTA will begin June 1, will be taking over for current CEO Len Engel, who is retiring.

NYCT plan to improve subways, buses, accessibility, corporate culture

Plan highlights include making more than 50 new stations accessible and completely redesigning the bus network.

MTA to launch LIRR fare, ticketing field study

Program will offer discounted fares for customers traveling between Brooklyn and seven stations in Queens on a temporary basis. 

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close