ComfortDelGro buys two Buslink companies in Australia for $165m

The companies operate a fleet of 401 buses across four Australian states.

ComfortDelGro Corporation's subsidiary ComfortDelGro Corporation Australia (CDC Australia) bought Buslink Pty Ltd and Buslink Southern Pty for $165m (A$168.2m).

According to an announcement, the Buslink companies operate a fleet of 401 buses across four states in Australia providing public bus, school bus, and charter bus services. They are contracted to run 164 buses in Northern Territory, 151 buses in Queensland, and 86 buses in New South Wales/Victoria.

The acquisition will enable CDC Australia to extend its footprint into the Northern Territory and Queensland markets and also expand its bus operations in New South Wales and Victoria, where it already operates more than 2,250 buses.

CDC Australia has also entered into agreements to acquire 11 depot properties for a purchase consideration of $22.3m (A$22.7m) for the operation of the bus services.

The acquisition of the Buslink Companies, which is subject to regulatory approval, will be financed through a mix of debt and internal funds. Completion is expected by 30 November 2018.