Particle.news
Download on the App Store
4 ARTICLES
·
3d ago

Mobico Finalizes £460m Sale of US School Bus Division to I Squared Capital

The deal, expected to generate £275–290m in upfront proceeds, aims to reduce debt as Mobico forecasts profits at the lower end of guidance and faces an 18% share price drop.

The company’s distinctive yellow school buses were the last British link to US passenger transport

Overview

  • Mobico has agreed to sell its North American school bus business, operating over 14,000 buses, to US-based I Squared Capital for £460m.
  • The sale is anticipated to generate £275–290m in net proceeds, which will be used to reduce Mobico’s £1.2bn debt burden.
  • The decision follows prolonged operational struggles, including pandemic-driven staff shortages, wage inflation, and recent US import tariffs impacting fleet costs.
  • Mobico’s share price fell by 18% following the announcement, with the company projecting full-year operating profits at the lower end of its guidance range.
  • CEO Ignacio Garat described the transaction as a significant milestone in strengthening the company’s financial position, while I Squared Capital highlighted the essential nature of school transportation services.