CFA Society Singapore
SINGAPORE (Apr 23): ComfortDelGro Corporation announced Tuesday it is acquiring Australian bus service operator B&E Blanch for A$28.3 million ($27.5 million).
B&E Blanch, which has a fleet of 48 buses and coaches, runs scheduled route and school bus services in New South Wales (NSW). The company operates as Blanch’s Bus Company and Brunswick Valley Coaches.
The latest acquisition is ComfortDelGro’s sixth acquisition in Australia in the last 12 months, and its fifth in NSW.
ComfortDelGro says the purchase consideration, which is approximately 7.6 times EBITDA, will be financed through a mix of debt and internal funds.
“We have been actively pursuing investment opportunities in Australia and other countries, as we strengthen our foundation for the next phase of growth,” says Yang Ban Seng, managing director and group CEO of ComfortDelGro.
“As more opportunities present themselves, we will further broaden our footprint Down Under in the months and years ahead,” he adds.
The deal, which is still subject to regulatory approval, is expected to be completed in May 2019. This will see ComfortDelGro increase its fleet in NSW to 1,550 vehicles.
ComfortDelGro currently has a total fleet of about 4,300 vehicles in Australia, comprising buses, coaches, taxis and ambulances.
Shares in ComfortDelGro closed 1.2% higher at $2.64 on Tuesday.