School Bus Contractors

Student Transportation Inc. Acquisition Deal Sealed

Thomas McMahon
Posted on April 27, 2018
A group of investors has purchased all outstanding shares of STI, the third-largest school bus operator in North America.
A group of investors has purchased all outstanding shares of STI, the third-largest school bus operator in North America.

TORONTO — The acquisition of the third-largest school bus operator in North America, Student Transportation Inc. (STI), was completed on Friday.

Under the arrangement, a company called Spinner Can AcquireCo Inc. acquired all of STI’s outstanding common shares. The purchasing company is sponsored by Caisse de dépôt et placement du Québec (CDPQ) and Ullico Inc.

CDPQ, an institutional investor that manages public pension plans and insurance programs in Quebec, has been invested in STI for 16 years, most of that time as the largest shareholder. Ullico is a labor-owned insurance and investment company based in Washington, D.C.

STI was founded by Denis Gallagher in 1997. Just over 20 years later, the company now transports 1.25 million students in the U.S. and Canada with a fleet of 13,500 school buses.

Along with its core school transportation group, the STI stable includes a managed services group and the SafeStop app, which provides school bus status notifications for parents and performance data for transportation staff. The company also took a minority stake in child rideshare provider HopSkipDrive last fall.

The proposed purchase of STI was unveiled in February. Shareholders approved the plan on April 19. Then, on Wednesday, STI obtained a final court order from the Ontario Superior Court of Justice approving the arrangement.

STI shareholders received US$7.50 per common share in cash, and the company will be de-listed from the Toronto Stock Exchange and Nasdaq.

With the announcement of the proposed acquisition in February, Gallagher noted that STI will remain focused on its mission.

“We will continue to be the North American leader in student transportation,” he said, “and our unwavering commitment to our employees, customers, safety, service, and innovation will remain unchanged.”

Related Topics: apps, Canada, Student Transportation Inc., Student Transportation of America

Thomas McMahon Executive Editor
Comments ( 0 )
More Stories
School Bus Fleet ConneX (SBFX) will convene in Scottsdale, Ariz., from April 22 to 24, 2020. Shown here is a roundtable discussion at the inaugural edition of SBFX, which was held in Miami, Fla., in April 2019.
News

School Bus Fleet ConneX to Return in 2020

Next year’s event will bring school bus operators and suppliers to Scottsdale, Ariz., for roundtable discussions, one-on-one meetings, and other networking activities.

Dennis Maple, First Student’s president, is leaving the company for a position outside of the organization. Paul Osland, First Student’s chief operating officer, will serve as interim president.
News

Top Leadership Change at First Student

Dennis Maple, the school bus company's president, will leave the company in August. Paul Osland, First Student’s chief operating officer, will serve as interim president.

John Polli, president and CEO of Reliance Student Transportation, says the company values efficient employee training and driver recruitment.
Article

School Bus Contractor Driven to Boost Safety, Training

From purchasing and operating one school bus company to later establishing another from the ground up, Reliance Student Transportation President and CEO John Polli has proven his dedication and commitment to the school bus industry.

Family-run Villani Bus Co. has grown by leaps and bounds over the last century, now transporting over 7,500 students every day. Shown here is Courtney Villani, president, with her son, Diodato.
News

New Jersey Bus Company Marks 100 Years

Run by three generations over the course of the last century, Villani Bus Co. now serves dozens of school districts and transports over 7,500 students every day.

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!