Stagecoach confirmed this morning it has sealed a £20m deal to buy Kelsian Group’s east London bus operations.
The travel business said it has “entered into binding agreements” to purchase the operations, which also include a deport at Lea Interchange, for an initial £10m followed by £1m each year for 10 years after the move is completed.
Kelsian’s east London operation operates 11 contracts on behalf of Transport for London, using a fleet of around 150 buses, with an annual turnover of around £38m.
Martin Griffiths, Stagecoach chief executive, said: “We have an extensive track-record of operating high-quality and profitable bus services on behalf of Transport for London.
“This targeted acquisition provides operational and margin improvement opportunities that we have successfully delivered at our other London bus depots.
“We look forward to working with TfL to deliver even better bus links to local communities in east London and also helping support the Mayor’s drive to deliver a net zero transport system.”