‘Agreement of Principles’ Reached on Possible Sale of UK Contractor with North American School Bus Ties

By Ryan Gray

The prospect that UK’s National Express Group, the owner of Durham School Services in the United States and Stock Transportation in Canada, might be acquired by rival Stagecoach Group plc appears more and more likely as the companies reached an understanding on how to move forward with a sale.

Stagecoach last week joined a consortium interested in purchasing all of National Express Group led by Jorge Cosmen, non-executive deputy chairman of National Express and chief representative of Spain’s Cosmen family, the majority shareholder of National Express at 18.5 percent. The family joined private equity firm CVC earlier this summer to bid for a takeover of National Express’ complete portfolio.

Today’s statement by National Express confirming that talks are underway regarding acquisition does not mention its North American operations under the National Express Corporation flag, which includes the second largest contracted school bus fleet in North America behind FirstGroup plc’s FirstGroup North America and First Student, which made its own unofficial bid for National Express in June.

We’re still trying to track down a comment by company representatives here in the states, but in reading National Express’ statement today, it would seem that the Cosmen’s have different designs on the North American school bus business as it only mentions Stagecoach possibly acquiring National Express’ UK bus and rail operations.

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