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

Pace mourns death of Bolton, former deputy exec. director

He passed away in the early hours of April 15, 2017, after battling pancreatic cancer. He was 69.

CATA CEO Draggoo announces plan to retire

She is currently the longest-serving transit CEO in the nation. Her career with the authority spans 43 years, 32 of them as CATA’s CEO.

FTA taps nonprofit to lead mobility-on-demand innovation project

The initiative, which will be lead by the Shared-Use Mobility Center, will focus on helping recipients of FTA’s Mobility On Demand Sandbox program funding demonstrate innovative transportation solutions in 11 cities across the U.S.

WMATA to add free Wi-Fi at 30 rail stations

If plans stay on track, nearly every Red Line station from Union Station to Medical Center will have access to free Wi-Fi and a broad section of the system’s core also should be covered by the end of the year.

METRO, BusCon now accepting Innovative Solutions Award submissions

Applications can be submitted either by the operation or the solutions provider and will be judged by our BusCon Advisory Board, with winners and shortlisted submissions recognized at BusCon’s Award Breakfast on Wednesday, Sept. 13.

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