Transport giant FirstGroup has made a strategic move by acquiring London coach firm Anderson Travel to enhance its First Bus business. The undisclosed deal involves the addition of approximately 40 coaches that operate in central London and at Heathrow Airport, serving various markets such as mini-coach services, contracted school routes, private hire, and tours.
Mark Anderson, the founder and majority owner of Anderson Travel, will continue to lead the day-to-day operations post-integration with First Bus. This acquisition is part of a series of recent purchases by FirstGroup within the coach sector as it seeks to expand its portfolio.
FirstGroup’s chief executive, Graham Sutherland, expressed enthusiasm about the acquisition, stating their commitment to identifying opportunities for diversification and growth. Anderson Travel currently operates from depots near Tower Bridge in central London and Heathrow Airport, generating revenues of £7.3 million and underlying earnings of approximately £1 million in the fiscal year ending June 2023.
In a strategic response to Labour’s plans to renationalise the UK railways, FirstGroup has been strengthening its bus division. Labour’s proposal aims to bring back nearly all passenger rail services under public ownership within five years. This includes merging existing private rail contracts into a newly established public entity as contracts expire.
FirstGroup’s current operations include major UK train operating companies like Avanti West Coast, Great Western Railway, and South Western Railway, along with open-access services provided by Hull Trains and Lumo. The First Bus division serves a significant portion of the UK population, with a fleet of over 4,800 buses transporting more than a million passengers daily.
The acquisition of Anderson Travel marks a strategic step for FirstGroup to broaden its presence and offerings in the transport sector, aligning with its expansion and growth objectives. It also reflects the company’s proactive approach in navigating the evolving transportation landscape to meet the changing needs of passengers and the market.