TORONTO — Student Transportation of Canada (STC) has entered into an agreement to acquire London, Ontario-based Elgie Bus Lines Ltd.
Elgie will add more than 200 vehicles and four locations to STC's Ontario operations, and $8.2 million Canadian in annual revenue for the upcoming fiscal year. The contract agreements with its school board customers provide for a revenue increase for the current year and a fuel cost-mitigation provision.
"This is another very good strategic acquisition for us in Ontario," said Denis Gallagher, STC chairman and CEO. "The acquisition increases our Canadian dollar cash flow and further increases our natural currency hedge, which in addition to fuel mitigation has been a strategic objective of ours.”
Elgie will be the company's eighth acquisition since its Initial Public Offering and will increase its Canadian fleet to more than 1,200 vehicles and its annualized revenue to nearly $50 million Canadian.
STC is a subsidiary of Student Transportation of America.