Student Transportation Inc. (STI) has signed an agreement to acquire Wisconsin-based Dairyland Bus Inc. and related companies.
The acquisition will add more than 700 vehicles, annualized revenues of more than $36 million and five locations to STI's existing Midwest operations.
Company officials said that the transaction and closing were contingent on meeting certain conditions, most of which have now been met. The transaction is binding and will close after regulatory approval.
Dairyland "is a regional company with a long history of excellent service in school busing which we have tried to acquire for many years," STI Chairman and CEO Denis Gallagher said. The deal "opens up a new state for us and positions us for further expansion in the upper Midwest that is consistent with our core focus on rural and suburban family-oriented school bus businesses."
Gallagher noted that Dairyland's fleet is young for its size, with an average age of five years. Executive Mike Pjevach and other staff members will join STI.
"We have known the Dairyland management team for many years and are especially thrilled to welcome seasoned industry executive Mike Pjevach and his team," Gallagher said. "The drivers and maintenance staffs are some of the best in the business."
STI has reported that fiscal year 2012 revenues are currently projected to reflect a 12-percent year-over-year increase. Gallagher said that this acquisition, once closed, is projected to add another 6 percent for the current fiscal year.