FirstGroup has further expanded its reach in the coach market with the purchase of London operator Anderson Travel for an undisclosed amount.
It includes the trading entities Anderson Travel Ltd, Anderson Tours Ltd, and Heathrow-based London Mini Coaches Ltd. The deal will bring around 40 modern coaches into the First Bus operational footprint and it follows the purchase earlier in 2024 of York Pullman by FirstGroup.
Anderson Travel is headquartered in central London and coaches that run under that brand are based at the same location near Tower Bridge. FirstGroup says that the purchase is part of a “strategy of targeted acquisitions to grow its share of the UK adjacent services market.”
Mark Anderson founded Anderson Travel in 1988 and will continue to lead the day-to-day operations of the business as it is integrated into First Bus.
The coach operator’s workstreams include private hire, tours, and contracted school duties. For the year to 30 June 2023 Anderson Travel reported revenues of £7.3 million and earnings before interest and taxes of £1 million.
Speaking to routeone earlier in 2024, Mr Anderson described 2023 as the business’s “best year ever” and said that like many other coach operators, it was seeing strong demand, highlighting incoming tourism as a particular strong point.
Anderson Tours is focused on a programme of own-product day trips from London and itineraries for private groups. Anderson Travel has expanded its home-to-school operation since 2020.
Speaking about the purchase, FirstGroup Chief Executive Graham Sutherland says: “The acquisition of Anderson Travel, an experienced and profitable coach company, builds on our recent strategic acquisitions in the B2B and B2C coach market.
“We will continue to identify and assess opportunities to diversify and grow as we increase our share of the adjacent services market in the UK, where we see considerable opportunity for stable, long-term and value accretive growth.”
