Update: I Squared Completes Acquisition of National Express School Bus Contractor

July 17, 2025

File photo of Durham School Services school buses.

Infrastructure investment firm I Squared Capital announced it finalized its purchase of all National Express School divisions and assets from the UK’s Mobico Group, including over 14,000 school buses operated by Durham School Services, Petermann and Stock Transportation.

The companies announced the completed deal for a reported $608 milloin to acquire Durham School Services, Petermann Bus and Stock Transportation Tuesday, ahead of the original expected date of Sept. 30, coinciding with the company’s third-quarter end. National Express is one of 69 companies in I Squared’s portfolio.

“Closing this transaction marks an important milestone and an exciting new chapter for NEXS. We are a trusted, safe and reliable transportation brand that represents a vital link to education for the communities we serve,” said National Express CEO Tim Werner in a statement. “Businesses like ours have the potential to have a positive impact on millions and provide the lifeblood for a functioning society, regardless of economic cycle.”

Wertner added National Express is looking to I Squared’s investment commitment and expertise in the transportation sector to strengthen and improve services and “further build on our reputation for safe and reliable student transportation.”

A National Express spokesperson told School Transportation News in April that the transition should be seamless for school district customers.

“We expect to continue business as usual under our current operating brands,” the spokesperson said at the time. “We will continue to deliver the high-quality, safe and reliable service that we’ve provided for more than 100 years.”

Durham School Services is the oldest company and service operated by National Express, dating back 108 years.

Mobico Group, formerly known as National Express Group and based in Birmingham, England, had been looking to sell its North American school bus division to reduce debt. In April, I Squared Capital also said it was seeking entrance into the school bus industry and announced its intent to do so in October 2023, “to address the long-term challenges which the pandemic created for school bus.”

I Squared noted that National Express has made “significant operational improvements, primarily improving driver retention and recruitment, route reinstatement, and improved contract pricing.

“The business has also improved fleet allocation which has led to better asset utilization, cash flow and customer satisfaction. All of these culminated in school bus delivering a net positive route outcome for the current school year bid season, the first in over a decade,” the company stated in a transaction summary. “However, whilst school bus has demonstrated its recovery from the pandemic’s effects, it continues to require significant maintenance and growth capital investment and has experienced persistent market challenges such as driver wage inflation and, more recently, potential fleet cost inflation from new tariffs.”

Wertner is expected to continue serving as CEO of National Express. He said the school bus contractor has focused on recovering lost routes, securing new contracts, recruiting and retaining drivers, and delivering price rises above inflation since he joined the company in 2023.

“This transfer of ownership will allow us to stand on a much stronger financial foundation for a wider spectrum of new opportunities and growth to benefit our stakeholders, valued partners and prospects, as well as reinforce our position as a transportation leader and flourish to even greater heights,” he said in a statement Friday. “With I Squared Capital’s strong reputation and support of our company, we firmly believe they will be an outstanding steward for us, and we look forward to furthering our footprint in the student transportation industry together.”

I Squared manages over $40 billion in assets that build and scale infrastructure businesses that deliver critical services to millions of people worldwide. The company’s portfolio includes over 90 companies operating in more than 70 countries and spanning sectors such as energy, utilities, digital infrastructure, transport, environmental and social infrastructure.

“School transportation is more than just a daily commute. It’s a vital link to education, which underpins a functioning society regardless of the economic cycle,” commented Gautam Bhandari, the global chief investment officer and managing partner at I Squared. “As infrastructure specialists, I Squared has specific expertise in providing vital public services, including public transport. Our investment will provide the capital needed to upgrade equipment and maintain safe, efficient transportation for children using this essential service so parents can [be] rest assured each time their family member travels.”

Mobico had operated Durham in the U.S. since the former National Express Group purchased the school bus contractor in August 1999, a year after acquiring Crabtree-Harmon that mostly operated in the Midwest. The company followed in 2000 with the purchase of School Services & Leasing, which at the time was the second-largest school bus contractor in the U.S. Two years later, it acquired Stock Transportation in Canada and in 2018 purchased Petermann in the U.S.