Business
Proposed Sale of North America School Bus
Proposed Sale of North America School Bus.
About this update from Mobico Group Plc
[{"type":"text","content":"\n\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nFOR IMMEDIATE RELEASE\n25 April 2025\nMOBICO GROUP PLC\n(\"Mobico\" or the \"Company\" or the \"Group\")\nProposed Sale of North America School Bus to I Squared Capital for an Enterprise Value of up to $608 million\nDisposal accelerates net debt reduction and enhances financial flexibility to focus on attractive growth opportunities\nMobico today announces that it has agreed to sell its North America School Bus business (\"School Bus\") to I Squared Capital (\"I Squared\"), the leading global infrastructure investment manager, for an enterprise value of up to $608 million (~£457 million1) (the \"Transaction\").\nTransaction summary\n· Enterprise value represents a multiple of ~50x School Bus' expected FY24 Adjusted Operating Profit of $11.5 million and ~5.0x School Bus' expected FY24 Adjusted EBITDA of $122 million (~5.6x pre IFRS 16)\n· Expected upfront net proceeds2 of approximately $365-385 million (~£275-290 million1). Reported net debt further reduced following the removal of School Bus' IFRS 16 leases of $38 million (as at 31 December 2024) \n· Terms of the Transaction, and the above enterprise value, include an earn-out of up to $70 million which is dependent on certain future performance conditions. The Transaction is conditional upon certain customary conditions, including anti-trust approvals, and is expected to complete early in the third quarter of 2025\n· Transaction follows a thorough process conducted since the Group announced its intention to prepare School Bus for sale in October 2023, and reflects both the operational improvements achieved in School Bus to drive a recovery in profitability following the pandemic, as well as the ongoing headwinds faced by the business\n· Enables the reallocation of cash flows from the capital-intensive School Bus business, which will allow the Group to continue to focus on deleveraging, alongside funding attractive growth opportunities, particularly in ALSA. In line with the Group's commitment to strengthen its balance sheet, net proceeds will be retained to reduce net debt\n· I Squared has an excellent track record in the sector and is well positioned to be a good custodian of the business, supporting its fut...