Student Transportation, Inc. (STI) is purchasing UK-based Stagecoach Group’s remaining U.S. school bus operations in Wisconsin.
By signing the agreement to acquire Dairlyand Bus, Inc., STI looks to add more than 700 vehicles and five locations with annual revenue of more than $36 million to its existing Midwest operations. The transfer of the management team from Dairlyand Bus, including GM Mike Pjevach, and all drivers and bus technicians are included in the deal.
“This is a regional company with a long history of excellent service in school busing, which we have tried to acquire for many years,” explained Denis J. Gallagher, STI chairman and CEO. “We are pleased to finally sign a deal for these companies. It opens up a new state for us and positions us for further expansion in the upper Midwest that is consistent with our core focus on rural and suburban family-oriented school bus businesses.”
Gallagher added that the fleet of school buses has an average age of five years.
STI reported that fiscal year 2012 revenues are currently projected to reflect a 12 percent year-over-year increase. Gallagher said this acquisition, once closed, is projected to add another 6 percent to that for the current fiscal year.
Meanwhile, Stagecoach sold its school bus business operated by subsidiary Coach USA so it could expand its commercial Megabus express service throughout North America and the UK. Last month, the company added a seventh hub in Atlanta. Coach USA continues to operate school bus service in Canada.
