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German FlixMobility buys Greyhound | Business Travel News

German mobility provider FlixMobility, which operates European services FlixBus and FlixTrain, has acquired Greyhound Lines Inc., the largest provider of long-distance bus services in the United States.

FlixMobility bought Greyhound from UK-based FirstGroup for $ 172 million, with $ 140 million initially paid and $ 32 million payable in installments over 18 months, through its wholly owned subsidiary Neptune Holding. The sale includes Greyhound’s fleet of vehicles, trademarks and “certain other” assets and liabilities, according to a financial release from FirstGroup.

The FlixBus Global network serves more than 2,500 destinations in 36 countries outside the United States, while Greyhound currently operates approximately 2,400 destinations in North America and serves nearly 16 million passengers per year, according to FlixMobility.

FlixMobility said the acquisition will help the company realize its vision of delivering sustainable and affordable travel around the world at a time when people are interested in alternatives to using the private car to reduce their footprint. carbon.

“An attractive offer will attract many more travelers from private cars to shared intercity bus mobility,” FlixMobility founder and co-CEO Andre Schwammlein said in a statement. “Together, FlixBus and Greyhound will be better able to meet this increased demand.”

Jochen Engert, Founder and Co-CEO of FlixMobility, added in a statement: “The continued expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to strengthen our global presence. The acquisition of Greyhound is a step forward in the United States “

FirstGroup is the UK’s second-largest regional bus operator and also has government contracts to operate multi-line rail services, as well as open access trains.

In 2018, FirstGroup blamed a loss of £ 327million on fierce competition for Greyhound’s long distance services resulting from increased capacity from low-cost US airlines.

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