First Bus takes over RATP London and gets back to London

FirstGroup has signed an agreement to acquire RATP Dev Transit London for a value of 90 million pounds (around 108 million euros). In 2023, RATP London’s revenues reached 271 million pounds.

The acquisition, as noted by trade media Bus & Coach Week, “will see the Group re-enter the London bus market in a strong position and will further grow and diversify the Group’s revenue”.

First Bus acquires RATP London

Le Monde highlights that “since 2022, RATP Dev had been looking to sell its 89 bus routes, mainly in west and central London”.

The same First Bus, that has committed to investing £250m in transitioning toward a zero-emission bus fleet by 2035, recently launched the campaign ‘Moving the everyday’, revealing a brand identity’s update. 

RATP London is one of the principal bus operators in London, with around 12% market share. It has 10 depots across Central and West London, in which four owned and six leased; as well as a fleet of around 1,000 buses of which a third are fully electric. The company has around 3,700 employees, over 80% of whom are drivers. RATP London’s current management team will transfer with the business and are expected to be retained post-acquisition.

RATP London sold to First Bus

The acquisition will be financed with 45 million pounds from the company’s existing cash reserves and the assumption of RATP London’s asset backed vehicle finances leases.

The Acquisition is subject to French government approval, in its capacity as the ultimate owner of the business, and is conditional on TfL consent to the change of control.

Graham Sutherland, FirstGroup Chief Executive Officer said: “This is a significant acquisition for the Group that will diversify our portfolio and materially grow our earnings in the medium term. It allows us to enter the London bus market at scale and will also bolster our credentials as we participate in future franchising opportunities across the UK. We look forward to continuing to build on our relationship with TfL and welcoming RATP London’s employees into the Group, to continue the transformation of the business and to capitalise on the growth potential in the London market.”