Scottish transport company FirstGroup has announced the acquisition of US bus giants Laidlaw in a deal worth $3.6 billion (£1.9 billion).
The Aberdeen-based company hopes to "generate approximately $70 million (£35.9 million) of annualised pre-tax cost savings" in the first full financial year following the completion of the takeover as well as establish the group as an international company.
Founded in 1924, Laidlaw is the largest provider of intercity bus services in the US and operates the Greyhound Lines across the US alongside the 40,000 iconic yellow school buses the company runs nationwide.
The deal will be funded by a combination of debt and equity finance. The debt portion will be financed from "new committed bank debt facilities of $3.75 billion (£2.0 billion)" while £200 million of shares will also be announced.
Moir Lockhead, chief executive officer of FirstGroup, said: "The improved earnings and strong cash flows arising from the acquisition will strengthen the Group’s position. FirstGroup aims to be the leader in delivering safe, reliable, innovative and sustainable transport services."
Kevin Benson president and chief executive officer of Laidlaw said: "The combination of Laidlaw and FirstGroup will bring together two well-known brands and two well respected companies that share a very strong focus on employee and customer satisfaction."
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