German mobility provider FlixMobility, which runs Europe’s
FlixBus and FlixTrain services, has acquired Greyhound Lines, Inc, the largest
provider of long-distance bus services in the US.
FlixMobility bought Greyhound from British firm FirstGroup
for $172 million, with $140 million paid initially and $32 million to be paid
in instalments over 18 months, through its wholly-owned Neptune Holding
company. The sale includes Greyhound’s vehicle fleet, trademarks and “certain
other” assets and liabilities.
The FlixBus Global network serves more than 2,500
destinations in 36 countries outside of the US, while Greyhound currently
operates around 2,400 destinations across North America and serves nearly 16
million passengers a year, according to FlixMobility.
FlixMobility said the acquisition will help the company
realise its vision to offer sustainable and affordable travel around the globe
at a time when people are showing interest in alternatives to individual car
usage to reduce their carbon footprint.
Andre Schwammlein, founder and co-CEO of FlixMobility,
commented: “Consumers across North America are increasingly seeking affordable,
comfortable, smart and sustainable mobility solutions. A compelling offering
will draw significantly more travellers away from private cars to shared
intercity bus mobility. Together, FlixBus and Greyhound will be better able to
meet this increased demand. As our business continues to recover from the
effects of the pandemic, we will replicate the success that we have already achieved
in 36 countries outside of the US with our innovative and customer centric
approach.”
Jochen Engert, founder and co-CEO of FlixMobility, added: “The
continuous expansion of our services through partnerships and acquisitions has
always been an integral part of our growth strategy to build our global
presence. The acquisition of Greyhound is a major step forward in the US. The FlixBus
and Greyhound teams share a common vision to make smart, affordable and
sustainable mobility accessible to all.”
FirstGroup’s executive chairman David Martin said: “The sale
of Greyhound to FlixMobility is part of our portfolio rationalisation strategy
to refocus FirstGroup on its leading UK public transport businesses. The strength
of Greyhound is its people, and I would like to thank them for their unwavering
commitment to their customers and communities. As part of FlixMobility, I am
confident that Greyhound will be well placed to continue to grow and develop
their iconic services for many years to come.”
FirstGroup is the UK’s second largest regional bus operator
and also holds government contracts for the Avanti, Great
Western Railway, South Western Railway and TransPennine Express rail franchises, as well as
open access operations Hull Trains and Lumo.
In 2018, FirstGroup blamed a £327 million loss on fierce
competition for Greyhound’s intercity services from increasing capacity on
low-cost US airlines.