North East rail and bus firm the Go-Ahead Group is to start operating bus services in southern Sweden after snapping up a family run bus company.
The Newcastle-based business has struck a deal to acquire Flexbuss Sverige AB, which provides bus services, school transport, medical transfer and private hire buses, and the vehicle fleet is operated with around 82% renewable fuels.
The company will be integrated into Go-Ahead’s London and International bus division, which operates franchised buses in London, Singapore and Dublin.
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Notably, all revenue in Sweden will be generated through contracts and won’t be exposed to changes in passenger demand, which has proved to be a major factor in the UK through the pandemic.
Under Go-Ahead’s ownership, services will continue to be overseen by Flexbuss’s management team.
The company said the acquisition of Flexbuss Sverige AB, completed for an undisclosed sum, is based on its expertise in franchise-based bus operations in London, Ireland and Singapore.
Christian Schreyer, group chief executive of The Go-Ahead Group, said: “This is an expansion of our successful London and international franchised bus business into a new territory. It will play to Go-Ahead’s strengths in operating bus contracts on behalf of local authorities, partners and third parties.”
Flexbuss operates around 380 vehicles and employs 600 people. The transaction is expected be completed next month.
Flexbuss Sverige AB has shown stable sales in recent years, with a good ability to win new contracts and this year has sales of just over SEK 300 million, (around £23.38m) with good profitability.
Magnus Hedin, CEO of Go-Ahead Nordic, said: “Go-Ahead is keen to develop its position in the Nordic region, a region where we see great potential. In Flexbuss Sverige AB, we have found a partner that gives us the opportunity to continue to develop our position as a public transport operator in Sweden. Together, we have good opportunities to develop in both quality and sustainability and thus grow into existing and new businesses.”
Krister Engdahl, chairman of the Board of Flexbuss Sverige AB, added: “By merging with Go-Ahead Nordic, we get a good springboard to continued growth and development of a business that we have built up over many years. For us at Flexbuss, it was important to find the right buyer and we feel that we have done that with Go-Ahead Nordic.”
The Newcastle-headquartered transport firm is already one of the UK’s largest bus operators, with a fleet of almost 6,000 buses across England.
It runs a quarter of London’s buses for Transport for London and outside the capital its serves high-density commuter markets in the North East, Greater Manchester, East Yorkshire, Oxfordshire, East Anglia, the South East and the South West of England, as well as its contracts in Singapore and Ireland.
