Stagecoach confirms sale of its inter-city coach businesses
Stagecoach’s agreement will provide certainty for the inter-city coach businesses’ employees and ensure its continued growth in the inter-city coach market.
Stagecoach has announced that it has entered into agreements to sell the marketing, retail and customer service activities of two of its inter-city coach businesses to international transport group ComfortDelGro.
Both the inter-city coach businesses, megabus.com and Falcon, are Stagecoach’s 100 per cent owned inter-city coach operations.
In addition, Stagecoach has a joint venture, Scottish Citylink, with ComfortDelGro, which is responsible for the Scottish Citylink express coach network and megabus.com branded services to, from and within Scotland.
As part of the agreement, Stagecoach and ComfortDelGro have agreed for Stagecoach to sell the following businesses to Scottish Citylink:
- The megabus.com retail platform and customer-service business, which sells and markets inter-city coach services in England and Wales
- Falcon South-West, which retails tickets for the coach route between Plymouth and Bristol Airport.
In return, Stagecoach’s share of the Citylink joint venture will increase from 35 per cent to 37.5 per cent.
Around 30 Stagecoach Group employees are expected to transfer to Scottish Citylink as part of the sale, and there is no change to the operation of the inter-city coach services themselves.
Stagecoach Chief Executive, Martin Griffiths, said: “Inter-city coach has a positive future as a greener and better value alternative to the car and as the UK rail network continues to see rising fares and operational challenges. The agreement we have reached with ComfortDelGro will provide certainty for employees in these businesses, and ensure we can continue to benefit from future growth in the inter-city coach market through our increased share in the Scottish Citylink joint venture.”
On behalf of ComfortDelGro, Sean O’Shea, Chief Executive Officer for Metroline, said: “ComfortDelGro’s 20-year long relationship with Stagecoach in Scotland is set to expand and I look forward to working together to deliver great services for inter-city customers in England and Wales.”
The agreement is subject to certain conditions, and completion of the transaction is expected in mid-August 2022.
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