LONDON (dpa-AFX) - FirstGroup plc (FGROY.PK, FGROF.PK, FGP.L), a provider of transport services in the UK and North America, announced Monday that its unit First South West Limited, has acquired the remaining 50 percent shareholding in its Somerset Passenger Solutions Ltd or SPS joint venture.
The shares have been acquired from JJP Holdings (South West) Limited. The consideration is 8.4 million pounds, paid on completion, with potential deferred consideration of up to 1.6 million pounds if certain conditions are met.
The payment is being funded from FirstGroup's existing cash resources.
SPS started in 2016 as a joint venture with 50/50 ownership between First South West Limited, and Somerset-based JJPH. The JV operates the contract to provide transport for workers employed at the Hinkley Point C nuclear power station near Bridgwater.
The JV now employs around 450 people running a 156 vehicle-strong operation. It delivers shuttle services seven days a week to and from Hinkley Point C. The business has annual revenues of approximately 37.0 million pounds.
FirstGroup said the purchase of the remaining 50 percent of SPS shares forms part of the First Bus strategy to develop and grow its share of the business-to-business services market.
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