FirstGroup has acquired the UK sightseeing bus operations of RATP Développement SA in a deal worth £17m.

The operations, based in London and Bath, currently operate under the brand Tootbus.

FirstGroup will take on a fleet of 63 buses – 42 in London and 21 in Bath – a freehold depot in Wandsworth, southwest London and a leased depot in Bath, as well as around 190 employees across the two locations. The UK operations of Tootbus reported revenues of £15.9m and an operating loss of £0.6m in 2023.

The FTSE 250 listed transport group, which was yesterday named as the preferred operator for a London Overground contract, said its latest acquisition will be financed from existing cash reserves and that it now anticipates a year end adjusted net debt position of £140-150m.

FirstGroup suggested that adding the Wandsworth depot to its existing First Bus London depot footprint would also allow the group to more effectively manage operations, enhance service delivery and improve profitability across its sightseeing operations

“The acquisition of the bus operations in London and Bath, in line with our UK-focused growth and diversification strategy, will allow us to further diversify and expand our footprint in two of our key markets,” FirstGroup’s CEO, Graham Sutherland, commented.

“The integration of the businesses will also create material operational and cost synergies and the opportunity to grow our London route portfolio over time.”

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