TIDMNEX
RNS Number : 9788V
National Express Group PLC
12 April 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF EU REGULATION 596/2014.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION.
National Express acquires majority stake in Silicon Valley's
premier employee shuttle company
-- Acquisition of 60% stake in WeDriveU, an employee shuttle
company serving many of the world's largest and fastest growing
companies in Silicon Valley
-- Option to acquire remaining shares in tranches over next three years
-- Earnings accretive from completion of the transaction
-- Positions National Express as a leader in a fast-growing
region and market segment and provides further growth opportunities
across North America
-- Further diversifies our North American operations, with $0.5
billion annualised revenue now generated outside of School Bus
-- Cash consideration of $84.3 million for an initial 60% equity stake
-- Transaction multiple of 7 times rolling 12 months EBITDA
National Express Group PLC ("National Express") is pleased to
announce the acquisition (the "Transaction") of 60 percent of the
shares of WeDriveU Holdings Inc. ("WeDriveU"), Silicon Valley's
premier employee shuttle company.
WeDriveU provides employee shuttle services to many of the
largest Fortune 500 companies based in Silicon Valley and the
broader San Francisco Bay Area. It also has a presence in several
other fast-growing US cities (such as Los Angeles, Seattle, Boston,
Portland, Denver and Austin), presenting other platforms for growth
in the employee shuttle market. The business has grown rapidly in
recent years, as many new contracts have been won and existing
customers' services have expanded.
The remaining WeDriveU shares are held by Dennis Carlson (the
CEO) and the senior management team, who will remain in place to
oversee the next phase of their expansion. As part of the
Transaction, National Express and the WeDriveU management team
retain call and put options, respectively, over the remaining
shares, exercisable annually over the next three years, with the
option price determined by reference to WeDriveU's
profitability.
With this acquisition National Express will form a new shuttle
division within its North American business, led by the WeDriveU
management team, to drive expansion in the employee, university and
hospital shuttle markets. Together these US markets are worth over
$5 billion in annual revenue.
WeDriveU transports almost 7 million passengers annually and is
an asset light business. In the year ended 31 December 2018, it
generated annual revenues of $139.9 million, normalised EBITDA of
$21.1 million and normalised operating profit of $15.4 million; as
at 31 December 2018 gross assets were $80 million. The Transaction
will be earnings accretive from completion.
Dean Finch, CEO of National Express Group, said: "I am delighted
WeDriveU are joining National Express as part of our strategic
acquisition programme. As the premier operator in Silicon Valley
and the wider San Francisco Bay Area, WeDriveU provides the
opportunity for expansion into a fast-growing market. WeDriveU also
has a presence in other fast-growing cities in the US, which
present other platforms for growth in this very attractive
market.
"I am impressed with the growth Dennis has achieved in recent
years and the whole business' commitment to safety and customer
service, which mirrors our own. I look forward to working with
Dennis and his team to achieve their exciting growth plans and
exploit additional, complementary opportunities as part of National
Express Group to deliver further value to our shareholders."
WeDriveU's Chairman and CEO Dennis Carlson said: "I am delighted
to be joining National Express. We have grown our business
significantly in recent years and plan to continue expanding into
new markets, drawing on National Express' reputation for excellence
and its extensive nationwide presence. I look forward to working
with Dean and the team in this exciting next phase for our
business."
The person responsible for making this announcement on behalf of
National Express is Jennifer Myram, Company Secretary.
Enquiries
National Express Group PLC
Chris Davies, Group Finance Director 0121 460 8655
Anthony Vigor, Director of Policy and External
Affairs 07767 425822
Louise Richardson, Head of Investor Relations 07827 807766
Maitland
Neil Bennett and James McFarlane 020 7379 5151
Notes:
Normalised EBITDA and operating profit exclude expenses that
will be transferred to the vendor as a consequence of this
transaction.
Legal Entity Identifier: 213800A8IQEMY8PA5X34.
About WeDriveU
WeDriveU is the leader in transportation solutions, specialising
in corporate shuttles serving 7 million annual passengers
nationwide. Recognised as a pioneer in mobility, WeDriveU is a
strategic partner to the world's top brands, with client programmes
that consistently earn awards for excellence in commuting and
sustainability. https://www.wedriveu.com
About National Express Group
National Express Group is a leading public transport operator
with bus, coach and rail services in the UK, Continental Europe,
North Africa, North America and the Middle East. The Group has a
fleet of over 30,000 vehicles and 900 million journeys are made on
National Express services each year. National Express Group is
quoted on the London Stock Exchange (NEX.L), and is a constituent
of the FTSE 250 with 2018 underlying revenue of GBP2.45 billion.
Further information on National Express Group can be found at:
http://www.nationalexpressgroup.com.
Cautionary statement
Information set forth in this announcement may contain certain
'forward-looking statements' with respect to National Express Group
PLC ('Company' or 'Group') and the Group's financial condition,
results of its operations and business, and certain plans,
strategy, objectives, goals and expectations with respect to these
items and the economies and markets in which the Group
operates.
Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'should', 'will',
'would', 'expects', 'believes', 'intends', 'plans', 'targets',
'goal' or 'estimates' or, in each case, their negative or other
variations or comparable terminology. Forward-looking statements
are not guarantees of future performance. By their very nature,
forward-looking statements are inherently unpredictable,
speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future.
Many of these assumptions, risks and uncertainties relate to
factors that are beyond the Group's ability to control or estimate
precisely. There are a number of such factors that could cause
actual results and developments to differ materially from those
expressed or implied by these forward-looking statements. These
factors include, but are not limited to, changes in the political
conditions, economies and markets in which the Group operates
(including the outcome of the negotiations to leave the EU);
changes in the legal, regulatory and competition frameworks in
which the Group operates; changes in the markets from which the
Group raises finance; the impact of legal or other proceedings
against or which affect the Group; changes in accounting practices
and interpretation of accounting standards under IFRS, and changes
in interest and exchange rates.
Any forward-looking statements made in this announcement, or
made subsequently, which are attributable to the Company or any
other member of the Group, or persons acting on their behalf, are
expressly qualified in their entirety by the factors referred to
above. Each forward-looking statement speaks only as of the date it
is made. Except as required by its legal or statutory obligations,
the Company does not intend to update any forward-looking
statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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