Agreement has been reached for FirstGroup to purchase York Pullman Bus Company. Completion of the surprise deal for the 130-vehicle independent coach and bus operator is expected “in the next few weeks,” the PLC says.
It describes York Pullman as “a high performing business comprising five well-established brands,” noting that in addition to its established coach and bus services, Pullman has a strong position in business-to-business operations in York and North Yorkshire.
Once complete, the acquisition will enhance FirstGroup’s footprint in North Yorkshire, “and provide growth opportunities in adjacent markets and development of its private hire capability.”
Under the leadership of Managing Director Tom James, York Pullman has become a well-respected organisation that was crowned Large Coach Operator of the Year in the 2022 routeone Awards. It can trace its name back for almost 100 years, although the current undertaking was formed by Mr James in 2007.
He will remain involved with the business post-takeover and continue to run it on a standalone basis with the existing York Pullman management, alongside the First Bus executive team.
In addition, Mr James will contribute to the development of the First Bus coach service growth strategy. The purchaser already has notable private hire coach operations in Aberdeen and Cornwall, alongside pools of scheduled service and contract coach deployments elsewhere, including its RailAir work in the Thames Valley and Aircoach in Ireland.
Conclusion of the deal with York Pullman is now subject to regulatory review. It follows the purchase of Ensignbus by FirstGroup in 2023, with the PLC’s Chief Executive Graham Sutherland noting in relation to York Pullman that growth and diversification of its portfolio is “a key pillar” of FirstGroup’s strategy.
Adds Mr Sutherland: “The acquisition of York Pullman – a long-established, high-performing business – fits well with our strategy as it will both enhance the First Bus operational footprint in North Yorkshire, and expand our adjacent services business, where we are looking to grow our presence.”
Mr James describes the sale as “an important step in the development of York Pullman,” which he says will “build on its success and ensure its sustainability for the future within FirstGroup, while retaining its identity and core values.” In the year to 31 December 2022, York Pullman reported revenue of approximately £10 million and earnings before interest and taxes of around £2 million.
