York Pullman to be sold to First Group

[Volvodart]

Agreement to acquire York Pullman Bus Company
Released : 26.01.2024

Agreement to acquire York Pullman Bus Company

FIRSTGROUP PLC

AGREEMENT TO ACQUIRE YORK PULLMAN BUS COMPANY




Agreement to acquire York Pullman Bus Company Ltd, a high-performing operator of coaches and buses, providing contracted and private hire services in areas across North Yorkshire from several depot locations

The Acquisition will enhance the First Bus operational footprint in the North Yorkshire region and provide profitable growth opportunities in adjacent services markets

Completion of the Acquisition is expected in the next few weeks subject to customary regulatory review
FirstGroup plc (the `Group') is pleased to announce that it has signed an agreement to acquire York Pullman Bus Company Ltd (`York Pullman'), a high-performing business comprising five well-established coach services brands (the `Acquisition').

York Pullman has a strong presence in regional and adjacent services operations in York and surrounding towns in North Yorkshire. The Acquisition plays strongly into the Group's strategy, providing profitable growth opportunities in adjacent services contracted and commercial markets, with the ability to develop this into other locations across the UK.

York Pullman provides home-to-school and college contracted services and private hire operations including rail replacement services, and operates a small number of local bus routes on behalf of several local authorities, complementary to the operations of First Bus in York. It has a mixed fleet of more than 130 vehicles with varying passenger capacity which has enabled it to build a broad range of customers. For the year ended 31 December 2022, York Pullman reported revenues of c.£10m and EBIT of c.£2m.

Tom James, Managing Director of York Pullman, will remain with the company as Managing Director and continue to run it on a standalone basis, as well as contributing to the development of the First Bus coach services growth strategy, with synergy benefits and support from the First Bus executive team.

Following the completion of the Acquisition the Group anticipates that its FY 2024 year-end adjusted net cash position will be £60-70m, with c.£30m of the ongoing share buyback programme still to be completed.



Graham Sutherland, FirstGroup Chief Executive Officer said:

"A key pillar of our strategy is to grow and diversify our portfolio. The acquisition of York Pullman, a long- established, high-performing business fits well with our strategy as it will both enhance the First Bus operational footprint in North Yorkshire and expand our adjacent services business, where we are looking to grow our presence."

 

[Eyersey468]

Agreement to acquire York Pullman Bus Company
Released : 26.01.2024

Agreement to acquire York Pullman Bus Company

I'm surprised First are keeping the existing management on

 

[Andyh82]

This in my eyes is very similar to the Ensign purchase, in that it is diversifying into slightly different markets

York Pullman has only a very small public bus operation, but have a very extensive school bus operation and private hire operation with a high standard of presentation. In Yorkshire it’s fair to say if you come across a coach park, a rail replacement operation, sports event, school trip etc you are highly likely to see a York Pullman coach.

I believe they do or did act as a dealership as well. There would routinely be half a dozen acquisitions reported in PSV Circle newsletters every month, most of which would never enter service and be sold on later.

 

[Leyland Bus]

I'm surprised First are keeping the existing management on

Why? Tom James and the team have grown the business into what it is. I think the penny has dropped with FirstBus that they don't necessarily know it all and need people (same with Ensign) that know a business inside out to help keep it a success and hopefully train the future management to their way of thinking that's worked so well...

 

[Eyersey468]

Why? Tom James and the team have grown the business into what it is. I think the penny has dropped with FirstBus that they don't necessarily know it all and need people (same with Ensign) that know a business inside out to help keep it a success and hopefully train the future management to their way of thinking that's worked so well...

Because usually when a business is taken over the new owners bring new managers in

 

[scosutsut]

Reported by Route One, due to complete in coming weeks:

Agreement has been reached for FirstGroup to purchase York Pullman Bus Company. Completion of the surprise deal for the 130-vehicle independent coach and bus operator is expected “in the next few weeks,” the PLC says.

It describes York Pullman as “a high performing business comprising five well-established brands,” noting that in addition to its established coach and bus services, Pullman has a strong position in business-to-business operations in York and North Yorkshire.

Once complete, the acquisition will enhance FirstGroup’s footprint in North Yorkshire, “and provide growth opportunities in adjacent markets and development of its private hire capability.”

Under the leadership of Managing Director Tom James, York Pullman has become a well-respected organisation that was crowned Large Coach Operator of the Year in the 2022 routeone Awards. It can trace its name back for almost 100 years, although the current undertaking was formed by Mr James in 2007.

He will remain involved with the business post-takeover and continue to run it on a standalone basis with the existing York Pullman management, alongside the First Bus executive team.

In addition, Mr James will contribute to the development of the First Bus coach service growth strategy. The purchaser already has notable private hire coach operations in Aberdeen and Cornwall, alongside pools of scheduled service and contract coach deployments elsewhere, including its RailAir work in the Thames Valley and Aircoach in Ireland.

Conclusion of the deal with York Pullman is now subject to regulatory review. It follows the purchase of Ensignbus by FirstGroup in 2023, with the PLC’s Chief Executive Graham Sutherland noting in relation to York Pullman that growth and diversification of its portfolio is “a key pillar” of FirstGroup’s strategy.

Adds Mr Sutherland: “The acquisition of York Pullman – a long-established, high-performing business – fits well with our strategy as it will both enhance the First Bus operational footprint in North Yorkshire, and expand our adjacent services business, where we are looking to grow our presence.”

Mr James describes the sale as “an important step in the development of York Pullman,” which he says will “build on its success and ensure its sustainability for the future within FirstGroup, while retaining its identity and core values.” In the year to 31 December 2022, York Pullman reported revenue of approximately £10 million and earnings before interest and taxes of around £2 million.

 

[YorkRailFan]

Agreement to acquire York Pullman Bus Company
Released : 26.01.2024

Agreement to acquire York Pullman Bus Company

What interests me is the differences between First York's operations and York Pullman's operations. First York operates cross-City, Park & Ride services as well as some Uni buses and a single (I can only think of 4) suburb-city route, whereas York Pullman's public bus routes are from the surrounding villages and towns into York (37 Tadcaster-York, 36 Sutton-upon-Derwent-York, X36 Pocklington-York via Sutton-Upon-Derwent and 21 Colton-York). Additionally, First York operates high frequency routes (with their least frequent service being 11, which I believe operates every 50 minutes, but 10 operates hourly on Sundays) whereas York Pullman operates mostly bi-hourly service (with 37 operating tri-hourly and X36 is twice daily) so it feels like a completely different operation for First York. Additionally, York Pullman leases some Volvo buses to Reliance (which operate on 29 and 31X usually) and (as mentioned up thread), York Pullman has a huge school bus operation.

It just feels strange to me to have a major bus operator like First, which operates high frequency, high capacity, high demand bus routes in cities to takeover a bus company which operates low frequency, low demand and low capacity routes which are subsidised by the local Councils (City of York Council and North Yorkshire County Council), its a change in strategy for First Group.

 

[Eyersey468]

What interests me is the differences between First York's operations and York Pullman's operations. First York operates cross-City, Park & Ride services as well as some Uni buses and a single (I can only think of 4) suburb-city route, whereas York Pullman's public bus routes are from the surrounding villages and towns into York (37 Tadcaster-York, 36 Sutton-upon-Derwent-York, X36 Pocklington-York via Sutton-Upon-Derwent and 21 Colton-York). Additionally, First York operates high frequency routes (with their least frequent service being 11, which I believe operates every 50 minutes, but 10 operates hourly on Sundays) whereas York Pullman operates mostly bi-hourly service (with 37 operating tri-hourly and X36 is twice daily) so it feels like a completely different operation for First York. Additionally, York Pullman leases some Volvo buses to Reliance (which operate on 29 and 31X usually) and (as mentioned up thread), York Pullman has a huge school bus operation.

It just feels strange to me to have a major bus operator like First, which operates high frequency, high capacity, high demand bus routes in cities to takeover a bus company which operates low frequency, low demand and low capacity routes which are subsidised by the local Councils (City of York Council and North Yorkshire County Council), its a change in strategy for First Group.

I agree it is a bit strange, all Pullman have ever wanted were school runs and council contracts which First don't generally go for

 

[YorkRailFan]

I agree it is a bit strange, all Pullman have ever wanted were school runs and council contracts which First don't generally go for

First taking over someone like Connexions wouldn't surprise me, but this did come as a surprise to me. I feel like some of York Pullman's routes would be better operated by other bus companies, 37 and 21 to Transdev as Transdev already operates to Tadcaster and that area, and 36/X36 to East Yorkshire (Go Ahead) who operate to Pocklington and the surrounding area. But even then, First would have the school bus operations which would be really strange for First to operate.

 

[dodecahedron67]

Pullman hasn't been bought for the CYC/NYCC tendered routes, it's for the coach/private hire/sightseeing business.

FY and YP will remain separate entities as FY will be the "electric" brand, and YP will remain operating diesels

CYC - City of York Council
NYCC - North Yorkshire County Council

 

[cactustwirly]

I guess the owner was retiring and it was for sale anyway? Possibly to stop a competitor like Go-Ahead from taking it

 

[YorkRailFan]

I guess the owner was retiring and it was for sale anyway? Possibly to stop a competitor like Go-Ahead from taking it

York Pullman is owned and managed by current MD Tom James, who will remain as MD after the buyout.

 

[Eyersey468]

I guess the owner was retiring and it was for sale anyway? Possibly to stop a competitor like Go-Ahead from taking it

I don't think he was retiring as Tom James is staying as a manager

 

[YorkRailFan]

The acquisition of our business is anticipated to be completed over the next few weeks, subject to customary regulatory review.

York Pullman is a high-performing business which also comprises five other well-established brands in the provision of coach services.

Together, these give York Pullman strong offerings in regional and business to business operations in York and the surrounding areas of North Yorkshire and into West Yorkshire.

York Pullman is predominantly a provider of home to school and college contracted services and private hire operations including rail replacement. It also operates open-top bus tours serving York’s thriving visitor and leisure market, while a small number of local bus routes operated on behalf of several local authorities are complementary to First Bus operations in York.



Tom James, Founder and Managing Director of York Pullman, will remain with the company and continue to run it on a standalone basis with support from the existing York Pullman team alongside the First Bus executive team. He said:

“We’ve enjoyed strong growth for more than a decade and established York Pullman as the leading name in coach and private hire services in York and the wider North Yorkshire area. This has been achieved with a brilliant and talented team in all departments.

“Becoming part of a larger group will enable us to continue to build on our significant strengths and grow the business further with access to additional resources and experience.”

The business has a mixed fleet of more than 130 vehicles with varying passenger capacity which has enabled it to attract a broad range of customers.

The acquisition of the York Pullman business will both enhance FirstGroup’s operational footprint in North Yorkshire and provide growth opportunities in adjacent markets and development of its private hire capability.



Graham Sutherland, FirstGroup Chief Executive Officer, said:

“A key pillar of our strategy is to grow and diversify our portfolio. The acquisition of York Pullman – a long-established, high-performing business – fits well with our strategy as it will both enhance the First Bus operational footprint in North Yorkshire and expand our adjacent services business, where we are looking to grow our presence.

“We look forward to welcoming Tom and the York Pullman employees to the Group.”

York Pullman agrees sale of the business to FirstGroup plc - York Pullman

York Pullman Bus Company Ltd has agreed a sale of the business to FirstGroup plc, the listed company which operates First Bus, the second-largest bus operator in the country. The acquisition of our business is anticipated to be completed over the next few weeks, subject to customary regulatory...

www.yorkpullmanbus.co.uk

We've got the Press Release from York Pullman now. Still many, many questions about this merger. Not heard anything from City of York Council or North Yorkshire County Council or from regulators.

 

[Leyland Bus]

Pullman hasn't been bought for the CYC/NYCC tendered routes, it's for the coach/private hire/sightseeing business.

FY and YP will remain separate entities as FY will be the "electric" brand, and YP will remain operating diesels

Not necessarily the electric/diesel split as FirstBus have insisted on putting 5 electric Yutong coaches into the YP fleet with one already operating and the reat to follow.

I guess the owner was retiring and it was for sale anyway? Possibly to stop a competitor like Go-Ahead from taking it

It is the owners long term plan to allow the name and company to survive come the day he does want to retire, hence why he's staying at the helm.

 

[dodecahedron67]

Not necessarily the electric/diesel split as FirstBus have insisted on putting 5 electric Yutong coaches into the YP fleet with one already operating and the reat to follow.

Sorry, I mean for the "immediate" future with regard to "service" buses - i.e the non-coach fleet - I've just worded that badly

 

[mangad]

Pullman hasn't been bought for the CYC/NYCC tendered routes, it's for the coach/private hire/sightseeing business.

FY and YP will remain separate entities as FY will be the "electric" brand, and YP will remain operating diesels

Will remain separate for a bit until some new head of First decides they need to "consolidate the business" and "simplify the structure" and so they get merged into the main operation. Most likely with disastrous consequences!

 

[markymark2000]

I've had a few thoughts on this but I do wonder, what are Pullmans wages like? Are they lower than First York? The reason I say is because I am sure the York Unibus tender is out soon isn't it? In which case, Pullman used to do the Unibus and could they be using the Pullman business as a way to set up a low cost unit for the Uni work so they can make that more profitable? IF the wages are lower, they can bid for more routes and heed off advances from the likes of East Yorkshire who are expanding little by little in York. Transdev has a new depot and will want to make returns on that investment. Rail Replacement is quite big in Yorkshire and if Pullman is a part of First, that keeps money within the business similar to GWRs area where First Travel Solutions give a good chunk of work to local First Bus divisions.

Could be speculation, just a thought.

 

[YorkRailFan]

I've had a few thoughts on this but I do wonder, what are Pullmans wages like? Are they lower than First York? The reason I say is because I am sure the York Unibus tender is out soon isn't it? In which case, Pullman used to do the Unibus and could they be using the Pullman business as a way to set up a low cost unit for the Uni work so they can make that more profitable? IF the wages are lower, they can bid for more routes and heed off advances from the likes of East Yorkshire who are expanding little by little in York. Transdev has a new depot and will want to make returns on that investment. Rail Replacement is quite big in Yorkshire and if Pullman is a part of First, that keeps money within the business similar to GWRs area where First Travel Solutions give a good chunk of work to local First Bus divisions.

Could be speculation, just a thought.

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Recruitment - York Pullman

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Not a significant difference, I wouldn't be surprised if York Pullman wages are increased to the levels of First York wages.

 

[bussnapperwm]

Wasn't York Pullman a First Travel Solutions contractor? If so, then, like Ensign, it makes logical sense as they then can run stuff in house

 

[markymark2000]

Wasn't York Pullman a First Travel Solutions contractor? If so, then, like Ensign, it makes logical sense as they then can run stuff in house

Yes, they are.

 

[sbrignall72]

Yes, they are.

Probably with all the new electrics entering service there will be an early chance to update the York Pullman fleet.

 

[YorkRailFan]

Probably with all the new electrics entering service there will be an early chance to update the York Pullman fleet.

York Pullman has been updating their fleet slowly over the years, its more up-to-date than Reliance's fleet.

 

[JD2168]

York Pullman has been updating their fleet slowly over the years, its more up-to-date than Reliance's fleet.

Agree with this post York Pullman run a number of E200MMC & Volvo B8RLE Evora’s. The school bus decker fleet seems to be either Long wheelbase Lothian B9TL Gemini’s & ex London Gemini’s.

 

[cnjb8]

Probably with all the new electrics entering service there will be an early chance to update the York Pullman fleet.

The diesel fleet at First York already have a new home decided

 

[Leyland Bus]

The diesel fleet at First York already have a new home decided

Ofcourse, plans never ever change do they?

 

[Busaholic]

First taking over someone like Connexions wouldn't surprise me, but this did come as a surprise to me. I feel like some of York Pullman's routes would be better operated by other bus companies, 37 and 21 to Transdev as Transdev already operates to Tadcaster and that area, and 36/X36 to East Yorkshire (Go Ahead) who operate to Pocklington and the surrounding area. But even then, First would have the school bus operations which would be really strange for First to operate.

First have a huge school bus operation in Cornwall, which county is referenced in the press release. Regulatory approval, as with Ensign, is much more likely to be given, in any case, if the company taken over has a completely different main focus.

 

[YorkRailFan]

First have a huge school bus operation in Cornwall, which county is referenced in the press release. Regulatory approval, as with Ensign, is much more likely to be given, in any case, if the company taken over has a completely different main focus.

True, although First's operations in Cornwall are vastly different to their operations in York. Their Cornwall operations have shrunk since Go Ahead has expanded meaning they operate school bus services, P&R services and tourist services, with First's operations in York being Cross-City, P&R, suburb-city and Uni bus services.

 

[Snex]

I might be mistaken but isn't this the second time that First has bought York Pullman. The first time in 2000, the original York Pullman, which the current owners resurrected the name in the mid 00's who they've just bought back effectively.

 

[JKP]

True, although First's operations in Cornwall are vastly different to their operations in York. Their Cornwall operations have shrunk since Go Ahead has expanded meaning they operate school bus services, P&R services and tourist services, with First's operations in York being Cross-City, P&R, suburb-city and Uni bus services.

First Kernow in Cornwall also run commercial bus services principally in a line from Newquay to Fowey southwestwards.