STI subsidiary wins new contract

CARNEGIE, Pa. — Student Transportation Inc.’s subsidiary, Student Transportation of America Inc. (STA), is expanding its operations in Pennsylvania through a new contract and two letters of intent to acquire two longtime school bus operators.

The company said it has signed two non-material letters of intent subject to final due diligence and customer consents to acquire two school transportation companies, and that it won a new contract that together will add over 190 vehicles to the fleet and annualized revenues of over $9 million.

Additional details will be disseminated upon closing of the acquisitions, which are scheduled prior to the start of the school year.

The company will fund the acquisitions through its existing credit facility. Management said the acquisitions will be immediately accretive to shareholders of its common stock upon closing and will be consistent with margins and purchase price multiples of previous acquisitions.

"Both of these local operators have been in the business for well over 40 years each, and we are very familiar with their quality operations," said Peter Pearson, executive vice president. "They chose to join with us so they could retire and to know their folks could be part of the family business atmosphere we have here at STA."

Pearson also said that the new contract adds to the company's regional density.