School Bus Fleet
MenuMENU
SearchSEARCH

FirstGroup closes Laidlaw acquisition

ABERDEEN, Scotland — FirstGroup PLC completed its acquisition of Laidlaw International Inc., making it the largest operator of school buses in North A...

November 1, 2007
3 min to read


ABERDEEN, Scotland — FirstGroup PLC completed its acquisition of Laidlaw International Inc., making it the largest operator of school buses in North America.

The price of the deal came out to $3.4 billion, which is about $200 million less than initially expected. The merger was proposed in February but took about seven months to close, mainly due to review processes and negotiations with antitrust authorities.

Ad Loading...

Laidlaw International, based in Naperville, Ill., is the holding company for Laidlaw Education Services — which runs about 40,000 school buses in the U.S. and Canada — along with Greyhound Lines, Greyhound Canada and Laidlaw Transit.

FirstGroup is the British parent company of Cincinnati-based First Student — which runs about 22,000 school buses in the U.S. and Canada. FirstGroup is the largest bus and rail provider in the U.K. and also operates First Transit and First Services in North America.

Company officials said that Laidlaw Education Services will become a part of First Student, bringing the total school bus fleet to more than 60,000 — about 12 percent of the approximately 500,000 school buses in the U.S. and Canada.

To meet antitrust requirements, FirstGroup will divest about 800 school buses in various locations. In Alaska, for example, First Student’s Anchorage school bus business will be sold to Forsythe Transportation.

The Anchorage sale “will help to ensure continued competition for school bus contracts in Alaska after the merger, to the benefit of Alaskan taxpayers,” said Thomas Barnett, assistant attorney general in charge of the U.S. Department of Justice’s Antitrust Division.

Ad Loading...

In Massachusetts, FirstGroup will sell nine school bus contracts to another operator. The state’s attorney general, Martha Coakley, led a multi-state investigation and lawsuit alleging that FirstGroup’s acquisition of Laidlaw would violate antitrust laws.

The case was settled in late September. Along with selling contracts, FirstGroup agreed to pay the states involved a total of $1.1 million to cover the costs of the investigation.

Still, FirstGroup officials said that the company plans to pursue new contracts. “There are a number of geographies that we aren’t currently present in, and we can also grow this market, we believe,” said Chief Operating Officer Dean Finch, who will be leading the company’s North American management team.

FirstGroup Chief Executive Moir Lockhead said that the company and its customers stand to benefit from increased economies of scale.

“Our ability to purchase at a higher level things like insurance, fuel, vehicles … we think will allow us to improve the service that we’ve been providing to the school boards and win more business,” Lockhead said.

Ad Loading...

Regarding the potential impact on employees, Lockhead said when the deal was proposed that “those people who are engaged in running buses in our network in North America and those that are running them with Laidlaw will continue to do that. I welcome them all into FirstGroup.”

Finch said the company expected no disruption in service to school districts. “Day-to-day contact will remain as it is now, and they can still call up their branch managers — they will be there for them,” he said.

FirstGroup’s first large U.S. investment came in 1999 with its acquisition of Ryder Public Transportation Services. First Student was formed from the combination of Ryder’s school transportation division and several other large busing companies.

With the merger of First Student and Laidlaw, National Express Corp. becomes the second-largest pupil transportation provider in North America. The company, which is also owned by a British firm, operates about 14,500 school buses under the brands Durham School Services in the U.S. and Stock Transportation in Canada.

Nearly 120,000 of the 473,000 school buses in the U.S. are owned by contractors. In Canada, contractors own about 30,000 of the 40,000 total school buses.

Subscribe to Our Newsletter

More Management

Black graphic with the headline “Zum, Generate Capital Expand Partnership,” the colorful Zum logo, and gold coin illustrations representing financing.
Management•by News/Media Release•October 15, 2026

Zum Secures Continued Financing Support for School Bus Expansion

Generate Private Credit has financed approximately $75 million in school bus deployments across three states, supporting more than 500 buses as Zum expands across the county.

Read More →
School Bus Fleet’s The Route video thumbnail featuring host Amanda Huggett and guest Sam Freshner, with the headline “Beyond Discipline: A Different Approach to Student Behavior on the School Bus.” Sponsored by IC Bus.
Sponsored•by Amanda Huggett•October 15, 2026

Beyond Discipline: A Different Approach to Student Behavior on the Bus

After implementing a dean of students program in Oregon, North Clackamas is seeing positive improvements. Here’s how it worked. The Route is brought to you by IC Bus.

Read More →
School Bus Fleet’s The Route podcast thumbnail featuring host Amanda Huggett and guest Sam Freshner, with the headline “A Different Approach to Student Behavior on the School Bus” over a yellow school bus background.
Management•October 14, 2026

A Dean of Transportation's Different Approach to Student Behavior on the School Bus

After implementing a dean of students program in Oregon, North Clackamas is seeing positive improvements on the bus. Here’s how it worked.

Read More →
Ad Loading...
Collage of NAPT ACTS 2026 highlights, including a speaker at the podium, a ribbon-cutting ceremony, attendees networking, and exhibitors demonstrating technology on the trade show floor.
Management•by Amanda Huggett•October 12, 2026

Inside NAPT ACTS 2026: Highlights from Louisville

From federal updates and student behavior strategies to new school bus technology and industry awards, see highlights from NAPT ACTS 2026 in Louisville.

Read More →
School Bus Fleet video thumbnail featuring 2026 School Bus Driver Hero Annette Brown smiling beside a yellow school bus, with the headline “Why School Bus Drivers Are Underrated Heroes” and the School Bus Driver Hero Award logo.
Management•by Staff•October 9, 2026

Meet the 2025 School Bus Driver Hero Winner: Annette Brown

We caught up with Wa-Nee Community Schools' Annette Brown on site at SBFX, where she was named the 2026 School Bus Driver Hero Award winner. Hear about her reaction, what she loves most about being a school bus driver, and more!

Read More →
School Bus Fleet graphic featuring three illustrated yellow school buses carrying students beneath the headline “The Comfort of Consistency,” with a red bottle of ketchup drawing a line across the upper left corner.
Management•October 9, 2026

Predictability Is Like Ketchup (According to 6-Year-Olds)

To students, a different school bus can feel like a full-blown crisis. One driver reflects on why familiar routines, showing up on time, and being reliably boring matter more than we think.

Read More →
Ad Loading...
A professional driver stands in front of a bus beside text reading “Samsara Driver Perks.”
Management•by Staff and News Reports•October 7, 2026

Samsara Launches Free Driver Rewards Program

The new Driver Perks program gives eligible professional drivers access to discounts and offers without adding a cost for participating fleets.

Read More →
Graphic showing hands counting $100 bills with text reading, “How to Finance Your Next School Bus: Municipal Leases, VPAs, Residuals.”
Management•October 7, 2026

How Tax-Exempt Municipal Leases Can Help Finance School Buses

Let’s explore school bus financing options, including municipal leases, vendor payable accounts, and balloon payments, and how they can help stretch fleet budgets.

Read More →
Group of School Bus Fleet 2026 Trailblazers above a graphic announcing that nominations are open for the 2027 SBF Trailblazers, with submissions due Dec. 14, 2026.
Management•by Staff•October 6, 2026

Nominate Rising School Transportation Pros Under 40!

We’re searching for the next generation of leaders making an impact across the K-12 student transportation industry to recognize as SBF’s 2027 Trailblazers. Nominations are open now!

Read More →
Ad Loading...
Graphic for School Bus Fleet’s September 2026 “Changing Lanes” personnel roundup featuring headshots of seven school transportation industry professionals who recently changed roles.
Management•by Staff and News Reports•October 2, 2026

Changing Lanes: BusWhere, EverDriven, InterMotive, Summit School Services, Switzer-Carty & Thomas Built Buses

Check out who's been hired, promoted, and appointed to leadership positions at various school transportation suppliers, contractors, and manufacturers.

Read More →