ComfortDelGro buys Australian bus operator for $111.1m

It also bought depot sites for $24.77m.

ComfortDelGro has bought Sydney’s oldest privately-run family bus and coach operator, FCL Holdings, for $111.1m (A$110m) and depot land and bus assets for $24.77m (A$24.45m) as part of its expansion to Australia.

According to an announcement, its acquisition of FCL Holdings worth A$110m is its second biggest investment in Australia. The transaction includes two freehold depot sites — the Terrey Hills Depot and the Toormina Depot — which are worth A$15.45m.

FCL Holdings runs Forest Coach Lines in Northern Sydney and regional New South Wales (NSW). It has a fleet of 220 buses spread over eight depots. It also operates Region 14 contract bus services in Metropolitan NSW, other bus services in regional NSW as well as school and non-school charter services

When completed in September 2018, the FCL deal, which is subject to regulatory approval, will increase ComfortDelGro’s fleet in NSW to 1,459 vehicles.

The other assets ComfortDelGro has bought include the buses and coaches of Coastal Liner Coaches which operates route bus services in Outer Sydney Metropolitan Bus Service Region 11. The acquisition is worth A$9m.

The coastal operator has a fleet of 31 buses and coaches and also specialises in luxury coach tour packages for theatre performances, concerts and day tours for individuals and small groups.

ComfortDelGro, which entered the Australian market in 2005, currently operates in three states in Australia – NSW, Victoria and Western Australia – with a total fleet of about 3,500 vehicles comprising buses, coaches, taxis and ambulances. It also offers outdoor advertising services.