FirstGroup snaps up sightseeing bus operator for £17 million

Transport giant FirstGroup has expanded into sightseeing buses after snapping up an operator in London and Bath.

The FTSE 250 company told shareholders it has acquired the UK sightseeing operations of French firm RATP Developpement SA for about £17 million.

It said the deal will help to grow and diversify its operations across key markets.

The acquired business runs under the Tootbus brand and runs 63 buses, 42 in London and 21 in Bath.

The Tootbus business also includes a large freehold depot in Wandsworth, southwest London, and a leased depot in Keynsham, Bath.

It said the London depot will help the group manage its operations in the capital and allow it to bid for additional Transport for London red bus route contracts.

The business, which also runs the Airdecker service from Bath to Bristol airport, employs about 190 people across its operations.

Tootbus’s UK operations reported revenues of £15.9 million in 2023 and delivered a roughly £600,000 operating loss for the year, the company said.

Graham Sutherland, FirstGroup chief executive, said: “The acquisition of the bus operations in London and Bath, in line with our UK-focused growth and diversification strategy, will allow us to further diversify and expand our footprint in two of our key markets.

“The integration of the businesses will also create material operational and cost synergies and the opportunity to grow our London route portfolio over time.”

Shares in FirstGroup were 1.5% higher on Thursday.