FirstGroup has reached agreement to purchase Purfleet-based Ensignbus from the Newman family in a surprise deal. When completed, it will include the local bus and contract service operation and 55 vehicles along with the resale and refurbishment business, but not the heritage coach and bus fleet.
Conclusion of the purchase is expected “over the next few months.” It will significantly expand First Bus’s current presence in the south Essex market. Ensignbus also runs a B2B segment that includes rail replacement services and private contracts.
In a statement, FirstGroup says that in addition to growing its Essex operation, the acquisition will provide “a number of growth opportunities in the B2B and bus vehicle dealership markets.” It also notes that the Purfleet base of Ensignbus is “high value.”
Adds FirstGroup Chief Executive Officer Graham Sutherland: “The acquisition of Ensigbus, a long-established, high-performing business, will allow us to not only grow our B2B offering, but to enhance our operational footprint in Essex, and we look forward to welcoming Ensignbus employees to the group.
“This is a strategically and financially accretive growth opportunity for us, and one that is fully aligned to our balanced capital allocation policy.”
Commenting on the agreement, Ensignbus Chairman Peter Newman says: “I want to thank all of our employees at Ensignbus for their ongoing hard work to deliver great service for our passengers across all of our communities in Essex. We will be supporting them fully as they move to their new employer.
“We are pleased that First Bus, with its reputation for customer service, innovation and sustainability, will take the Ensignbus business forward as a going concern and we wish it a successful future.
“We will continue to serve our communities and operate our network as usual until the completion date.”
Ensignbus has won multiple awards for its work in developing and improving the bus network in Thurrock, which has done largely with services previously operated by others. The business was founded by Mr Newman in 1972, although he bought and sold his first bus in the early 1960s.
Ensignbus later rose to fame by purchasing and reselling a large number of mid-life former London Transport Daimler Fleetline double-deckers. It subsequently entered the open-top sightseeing market and operated tendered services in London. Both of those operations were later sold.
When the deal with FirstGroup completes, it will represent a further independent bus operator to sell to a large group in 2023 after Go-Ahead subsidiary Brighton and Hove Buses purchased Southdown Buses in late January.
