Stagecoach has re-entered the tendered London bus market by buying back East London Bus Group, which has 10 depots and a fleet of 1,400 buses, for £60m.
Stagecoach sold the company to Australian Bank Macquarie in June 2006 for £263.6m. However, subsequent operational and other problems, compounded by the eviction from its former depot, on the Olympics site, saw the business go loss making.
East London Bus Group is the third-largest operator in London, with a market share of approximately 15%, and Stagecoach says there it intends to turn around what it sees as an under-performing bus operator.
Says Stagecoach chief executive Brian Souter: "We operated a successful bus business in London for several years and are pleased to re-enter the London bus market at what we consider to be an attractive price.
"Whilst we do not underestimate the challenges we face in driving up the financial performance of the acquired business, we relish the opportunity to apply our expertise in managing UK bus businesses."
