Transdev will acquire First Transit, Inc., under an agreement that will see competencies from each company "ideally positioned to capture the organic new growth opportunities resulting from the increasing need for renewed mobility solutions."
Financial terms of the transaction were not disclosed and both Transdev and First Transit will continue to operate independently until the deal is closed.
“By joining forces with First Transit, Transdev will be adding new services and expertise to its U.S. and Canada operations. This acquisition is highly complementary in terms of regional presence and solutions offered," explained Chairman and CEO of Transdev Group Thierry Mallet. "It is also aligned with Transdev Group’s Moving Green decarbonization strategy, and shows our willingness to continue investing in operational technology and fleet decarbonization to provide even safer and more environmentally-friendly transportation services to communities in the two countries.”
Transdev’s says its expertise in fixed route bus and presence in rail combined with First Transit’s complementary positions in shuttle services and paratransit will provide an enhanced public transportation offer in the U.S. and Canada and will further enable the development of mobility services within local communities in the two countries.
With the ongoing transition to zero-emission fleets in the bus sector, Transdev notes the companies will unlock further growth potential. The new entity’s focus on innovation will notably see a growing share of electric buses, further contributing to the reduction of its carbon footprint. Transdev’s Moving Green decarbonization strategy targets, by 2030, a 30 percent reduction in greenhouse gas emissions and a 50 percent increase in alternative fuel fleets (gas, biogas, biofuels, electric, hydrogen) versus 2018 levels.
This transaction will also provide new professional development opportunities for employees of both companies.
“I am excited about the opportunity to combine the talents and expertise of Transdev U.S. with First Transit. This move will greatly benefit our clients and passengers with their daily mobility needs by delivering high-quality services and allowing a faster transition to sustainable transportation," said Transdev U.S. CEO Laura Hendricks. "We look forward to welcoming First Transit’s employees to Transdev and showing new clients and partners how we will best deliver on safe, sustainable mobility solutions.”
This is the second acquisition for First Transit Topco Inc. in about 16 months. EQT Infrastructure closed on the purchase of First Transit and its school transportation arm, First Student, in a $4.6 billion deal with FirstGroup plc. First Student is not part of the Transdev acquisition.
Cincinnati-based First Transit was founded in 1955 and transports 300 million passengers annually in North America. EQT Infrastructure explains that under its ownership, significant investments were made in First Transit, bolstering the company's organization, operations and digital technology platform.
"Over the [p]ast few years, First Transit has continued its track record of growth, creating value for our investors, passengers, partners and employees," said First Transit CEO Brad Thomas. "As we embark on this new chapter with Transdev North America, we thank our partners at EQT for investing in us and our mission. We are excited about the future and look forward to what is ahead."
