EQT Infrastructure is buying the US business of transport operator FirstGroup in a $4.6bn (€3.9bn) deal.

The EQT Infrastructure V fund has agreed to buy the UK-listed firm’s North American subsidiaries First Student and First Transit.

Founded in 1955, First Transit is a leading public transit management operator that transports 350m passengers annually across approximately 300 locations in North America. First Student is the largest student transportation service provider in North America, providing over 900m student journeys a year to approximately 1,000 school districts. 

EQT Infrastructure said it intends to help “future-proof the company by investing in the electrification of its fleet and accelerating its transition to renewable fuel sources in order to support passenger health and reduce environmental impact”.

Crosby Cook, partner and investment advisor at EQT Partners, said: “EQT is excited to partner with the management teams of these businesses and invest in operational technology and fleet decarbonisation to provide even safer and more environmentally friendly transportation services to students and communities across the continent.”

Matthew Gregory, CEO of FirstGroup, said: “EQT has a strong record of success in the transport and logistics sector, and we have been impressed by EQT’s vision for investment and growth at First Student and First Transit.

”I am confident that EQT will be a great partner for the company to achieve its full potential as it embarks on its next phase of growth.”

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