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FirstGroup's US bus ticket
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July 21, 1999: 5:02 a.m. ET
UK operator will pay $940 million for Ryder Systems' school bus unit
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LONDON (CNNfn) - U.K. transport operator FirstGroup agreed to pay $940 million in cash for the bus operations of Ryder Systems Wednesday.
Ryder Public Transportation Services provides school and public transport services in more than 30 U.S. states, and generated revenue of $582 million last year.
FirstGroup is funding the deal in part through a one- for-four rights issue to raise 238 million pounds ($374 million).
The acquisition is the latest in a series of deals as U.K. transport companies rush to pick up U.S. bus and coach operations. FirstGroup is the largest bus operator in Britain.
British investors welcomed the deal, driving FirstGroup more than 2 percent higher to 230 pence in early London trading.
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FirstGroup
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