FirstGroup subsidiary paying £8.4m for joint venture control
By Rob Griffin
11:00, 4 October 2021
FirstGroup has announced First South West, its wholly owned subsidiary, has acquired the remaining 50% shareholding in its Somerset Passenger Solutions (SPS) joint venture.
In a statement to the London Stock Exchange on Monday, the Aberdeen-based transport operator said £8.4m ($11.4m) would be paid from existing cash resources to JJP Holdings (JJPH).
FirstGroup also said the deal included a “potential deferred consideration” of up to £1.6m if certain conditions were met.
Nuclear power station workers
SPS operates the contract to provide transport for workers employed at the Hinkley Point C nuclear power station near Bridgwater.
The joint venture was started five years ago as a 50-50 arrangement between First South West and Somerset-based JJPH.
It now employs around 450 people running a 156 vehicle-strong operation, delivering shuttle services seven days a week to and from Hinkley Point C.
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First Bus strategy
According to the statement, the business has annual revenues of approximately £37m.
“The purchase of the remaining 50% of SPS shares forms part of the First Bus strategy to develop and grow its share of the business-to-business services market,” FirstGroup added.
Read more: FirstGroup reports good results, £500m to shareholders
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