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Mobico Group PLC provided an update on the sale of its North America School Bus business to I Squared Capital, initially announced on 25 April 2025 for an enterprise value of up to $608 million (~£457 million). Mobico expects to close the sale in July 2025, with anticipated upfront net proceeds of approximately $365-385 million (~£275-290 million), subject to final US Surface Transportation Board approval expected in early July 2025. The Group also confirmed its FY 2025 Adjusted Operating Profit is expected to be in the range of £180 - £195 million, excluding any contribution from the School Bus business.
| Date | 24 Jun 2025 |
| Time | 07:00:09 |
| Category | Trading updates |
| ID | 0672O |
24 June 2025
MOBICO GROUP PLC
("Mobico" or the "Group")
Update on North America School Bus sale and FY 2025 Adjusted Operating Profit Guidance
On 25 April 2025 Mobico announced that it had agreed to sell its North America School Bus business ("School Bus") to I Squared Capital ("I Squared") for an enterprise value of up to $608 million (~£457 million[1]) (the "Transaction").
Since that announcement, good progress has been made in obtaining the necessary consents and approvals, including anti-trust approvals, required for the Transaction to close. The only substantive approval remaining is from the US Surface Transportation Board ("STB"), which has already tentatively approved and authorised the Transaction, and this approval is expected to become final in early July 2025.
On the basis that the STB approval does become final in early July 2025, Mobico would expect to close the sale of School Bus in July 2025. Expected upfront net proceeds[2] remain at approximately $365-385 million (~£275-290 million1 ) with the final outcome confirmed following the closing of the Transaction.
An update on anticipated cashflow and leverage will be provided following the closing of the Transaction, and the Group continues to have strong liquidity with no significant debt maturities due until the second half of 2027 and the sale of School Bus providing sufficient proceeds to cover those maturities.
Mobico also takes this opportunity to confirm that, excluding any contribution from School Bus for the period of the Group's ownership in FY 2025, it currently expects FY 2025 Adjusted Operating Profit to be in the range £180 - £195m[3].
For further information, please contact:
Mobico Group PLC
|
Michael Barker, Investor Relations |
+44 (0)121 803 2580 |
Headland
|
Stephen Malthouse |
+44 (0)7734 956201 |
|
Matt Denham |
+44(0)7551 825496 |
About Mobico Group
Mobico is a leading, international shared mobility provider with bus, coach and rail services in the UK, North America, continental Europe, North Africa and the Middle East.
Notes
1. Legal Entity Identifier: 213800A8IQEMY8PA5X34
2. Classification: 3.1 (with reference to DTR6 Annex 1R)
[1] Translated illustratively at a GBP / USD rate of approximately 1.33 based on the rate as at close of business on 24 April 2025.
[2] Net upfront proceeds for covenant deleveraging, after deduction for debt-like items including IFRS 16 leases, deferred capital expenditure, and other items, as well as transaction fees. The Net Proceeds figure does not include the earn-out amount. The final amount of Net Proceeds will be subject to customary completion adjustment by virtue of the completion accounts mechanism and dependent on the timing of completion.
[3] School Bus contributed £9m of Adjusted Operating Profit in FY2024.