Greyhound acquired by FlixMobility for US Intercity Bus Service expansion
FlixMobility, global mobility provider of the FlixBus and FlixTrain brands, announced today it has acquired Greyhound Lines, Inc., the largest provider of long-distance bus transportation in the United States, from FirstGroup plc.
This acquisition marks another important step in FlixMobility’s vision to provide easy-to-use, affordable, and environmentally friendly travel for consumers across the globe.
The purchase brings together FlixBus’ innovative global technology and shared mobility expertise with Greyhound’s iconic nationwide presence and experience, creating a company that will be better able to service the needs of intercity bus travellers in the U.S. Intercity bus lines were a lifeline during the pandemic for communities and essential workers, and as economies re-open, they will be a tremendous driver for sustainable growth across the country. The FlixBus Global network serves over 2,500 destinations in 36 countries outside of the U.S. with 400,000 daily connections. Greyhound currently connects approximately 2,400 destinations across North America with nearly 16 million passengers each year.
André Schwämmlein, Founder and Chief Executive Officer of FlixMobility, said: “Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. A compelling offering will draw significantly more travelers away from private cars to shared intercity bus mobility. Together, FlixBus and Greyhound will be better able to meet this increased demand. As our business continues to recover from the effects of the pandemic, we will replicate the success that we have already achieved in 36 countries outside of the U.S. with our innovative and customer centric approach.”
Buses as a sustainable and accessible alternative are now more important than ever. Fluctuations in the cost of gas, the recent escalation of car prices, and climate change concerns have increased the interest of many consumers in finding alternatives to individual car usage. FlixMobility is operating at the forefront of this global mega-trend, and the acquisition of the iconic Greyhound business will help the company realize its vision to offer sustainable and affordable travel to everyone.
Jochen Engert, Founder and Chief Executive Officer of FlixMobility, commented: “The continuous expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to build our global presence. The acquisition of Greyhound is a major step forward in the US. The FlixBus and Greyhound teams share a common vision to make smart, affordable and sustainable mobility accessible to all.”
David Martin, Executive Chairman, FirstGroup plc., said: “The sale of Greyhound to FlixMobility is part of our portfolio rationalization strategy to refocus FirstGroup on its leading UK public transport businesses. The strength of Greyhound is its people, and I would like to thank them for their unwavering commitment to their customers and communities. As part of FlixMobility, I am confident that Greyhound will be well placed to continue to grow and develop their iconic services for many years to come.”
FirstGroup has reached agreement with Neptune Holding Inc., a corporation 100% controlled by FlixMobility, to sell Greyhound Lines, Inc., the US Greyhound operating business (including its vehicle fleet, trademarks, and certain other assets and liabilities) for an enterprise value on a debt-free / cash-free basis of c.$46m plus unconditional deferred consideration of $32m with an interest rate of 5% per annum.
FlixMobility was started in Germany in 2013 by Jochen Engert, Daniel Krauss and André Schwämmlein to deliver a revolutionary means of travel that combined technological advances, e-commerce capabilities, and sustainable transportation. Over the past eight years, the company has demonstrated significant success, with FlixBus growing to become Europe’s largest intercity bus network, helping more than 62 million people in 2019 reach their destinations.
FlixBus USA launched in 2018 with destinations across the Southwest, including Los Angeles, CA, Las Vegas, NV, and Phoenix, AZ. Since then, the Company has expanded its operations to facilitate travel between additional cities in the Southwest, South, Northeast and Pacific Northwest.