FirstGroup sells Greyhound bus facilities for £100m

Transport giant FirstGroup has sold off three major bus facilities in North America for a total of £102m.

The Aberdeen-based firm said the move was part of a continuing drive to rationalise its Greyhound bus property portfolio.

The disposals include a garage and customer terminal facility in Los Angeles, as well as facilities in Denver, Colorado, and Ottawa, Canada.

The group reported a total profit for the three transactions of about £73m.

The cash proceeds will be used for "general corporate purposes".

FirstGroup said it was moving operations to intermodal transport hubs or new facilities "better tailored to customers' needs".

The company has already sold six smaller "surplus locations" in the first half of the financial year.

A number of other "property sales processes" are also under way.

The move comes as FirstGroup seeks to pull out of North America in order to focus on its UK bus and rail operations.

It faced increasing pressure earlier this year from an activist investor to separate off its North American operations.

The group, which has been trying to sell its Greyhound US intercity bus service since May 2019, confirmed on Thursday that it remained in discussions with at least one unnamed party over a potential sale.

Revenue from its Greyhound division has been hit hard by the coronavirus pandemic this year.

In the six months to 30 September, revenue fell by more than half, to £159.8m, as demand slumped.

Meanwhile, the group confirmed it was also still in discussions with "credible potential buyers" for its North American contract businesses, First Transit and First Student, America's biggest school bus operator.