WALL, N.J. — Student Transportation Inc. (STI) has acquired School Transportation Services (STS), based in Passaic County, N.J.
The acquisition will add over 90 vehicles to the company’s fleet and annualized revenues of just over $5.4 million. STI utilized availability under its current senior credit facility to fund the acquisition.
Management expects the deal to be immediately accretive to shareholders of its common stock. The transaction and closing were contingent upon meeting certain conditions and receiving various consents and renewals, which have been obtained.
"With this acquisition, we have completed the last of four previously announced letters of intent we signed in July," said Patrick Vaughan, chief operating officer. "STS is a family-owned and-operated business for over 40 years. This deal complements the service of our existing North Jersey locations and creates synergies in operations with facilities and additional assets under management."
Moreover, the company has reported that fiscal year 2012 revenues are currently projected to reflect a 12 percent year-over-year increase with the new business secured to date.