FirstGroup plc (LON:FGP) has announced that it has acquired Shropshire-based Lakeside Group comprising well recognised local brands Lakeside Coaches, Merediths Coaches and A. T. Brown Coaches.
- FirstGroup has acquired Lakeside Group, a profitable, well-established Shropshire and Cheshire-based company that provides school, B2B and B2C private hire services, with a fleet of c.145 buses and coaches
- Complementing the recent additions to the First Bus portfolio, this strategic acquisition will allow us to grow our coaching business and offers the potential to increase our presence in the West Midlands
Lakeside operates a fleet of c.145 buses and coaches of various sizes primarily from a central, owned depot in Ellesmere, Shropshire and from five smaller depots – one owned in Shrewsbury and the others leased – in Shropshire, Telford and South Cheshire.
The majority of Lakeside’s revenue is derived from school and private hire contracts, with the remaining revenue coming from tours, a small local bus operation (under contract to Shropshire County Council) and B2B operations. The business has grown significantly over recent years, both organically and inorganically, and has retained strong levels of profitability. For the year ended 31 March 2024, Lakeside delivered revenues of c.£12.5m and EBIT of c.£2.5m.
Neal Hall, the Managing Director of Lakeside, will continue to manage the business on a day-to-day basis going forward. Gareth Davies, the owner of Lakeside, will continue to lead the business and will join First Bus to support the ongoing development of its wider coaching strategy.
The acquisitions we have made in recent years, in line with our stated strategy to grow and diversify the First Bus portfolio, now represent combined annualised revenues of c.£100m and EBIT of c.£13m and we continue to evaluate a pipeline of organic and inorganic growth opportunities.
Graham Sutherland, FirstGroup Chief Executive Officer said:
“The acquisition of Lakeside, a profitable business with excellent growth potential, builds on our recent acquisitions in First Bus. The addition to our portfolio will not only grow our position in adjacent services, but it will also allow us to enter new regions which is key to the overall First Bus strategy.”
