School Bus Contractors

Student Transportation to acquire four school bus companies

Posted on July 6, 2011

WALL, N.J. — Student Transportation Inc. (STI) has signed four letters of intent subject to final due diligence and customer consents to acquire four school bus companies that will add over 150 vehicles to the company’s fleet and annualized revenues of over $7.8 million.

Additional details will be disseminated upon closing of the acquisitions, which are scheduled prior to the start of the school year in August. The company will fund the acquisitions through its existing credit facility. Management said the transactions 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.

"These acquisitions, while small in size, strengthen our existing operating locations by adding regional density to those areas," said Denis J. Gallagher, chairman and CEO. "We plan on continuing the excellent service these companies have delivered and to provide our added value and expertise in safety and community service. They have very good drivers, top-notch maintenance and support staff, and customers who value safe and reliable local service. Also, each of the new companies has some form of fuel protection clauses in place, which is important criteria for us when making an acquisition.”

Officials added that with recent contract wins and the year-over-year built-in growth from several acquisitions closed in fiscal year 2011, the company is poised for more than 11-percent year-over-year growth in revenues before the new school season starts.

STI also reported that it continues to review solid opportunities available through its acquisition, bid-in and conversion growth strategy.

Related Topics: Student Transportation Inc.

Comments ( 0 )
More Stories
Dunia Burns, who is employed by Chestnut Ridge Transportation in New York, was named a “Mountie Superstar” by the school district she serves for exceptional service to its students and staff. 
News

School Bus Driver Honored for Exceptional Service

Dunia Burns, who is employed by Chestnut Ridge Transportation in New York, is named a “Mountie Superstar” by the school district she serves for exceptional service to its students and staff.  

In a video from Wichita Public Schools, a First Student training manager explains what it takes to become a school bus driver as the local operation looks to bring new recruits on board.
Article

Dealing With Driver Shortage Is Still a Big Deal

There are other commercial driving jobs that pay more than driving a school bus, but they don’t involve transporting students. The opportunity to contribute to children’s education and safety could spark interest in the job.    

Be the First to Know

Get the latest news and most popular articles from SBF delivered straight to your inbox. Stay on top of the school bus industry and don't miss a thing!