Media Centre

NX expands its presence in the Canadian school bus market through acquisition

04 Aug 2005

National Express Group PLC (“the Group”), the third largest operator of school buses in North America, today announces it has acquired Northstar, the school bus operation of Contrans Income Fund, a Canadian freight haulage company quoted on the Toronto Stock Exchange, for a cash consideration of £26 million (C$56 million). The acquisition, which is expected to be earnings enhancing in the current year, will increase the presence of the Group’s existing student bus operation, Stock Transportation (“Stock”) in the Canadian school bus market.

Northstar operates 800 school buses and has 850 employees. It serves 12 school boards around Southern Ontario and provides entry into new areas such as Simcoe County, north of Toronto.

The acquisition of Northstar consolidates the Group's position as the third largest student transportation operator in North America. The acquisition will be integrated into Stock Transportation.

Commenting on the acquisition Phil White, Chief Executive, National Express Group said:

“Following last week’s conditional disposal of our Public Transit operations, we are delighted to announce a further expansion to our existing school bus operations in North America. The acquisition of Northstar consolidates our position in Canada and builds on the momentum we have achieved over the past two years. Northstar has a significant operation in Ontario where we wish to grow our presence. We welcome the Northstar management team to the Group and look forward to working with them on developing the enlarged business.”

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For further information:

Adam Walker/Nicola Marsden
National Express Group PLC 020 7529 2000

Ben Foster/Dido Laurimore
Financial Dynamics 020 7831 3113