UK bus company Stagecoach is buying Kelsian Group’s East London bus operations and depot for £20m (€23.5m).

Stagecoach said its subsidiary, Stagecoach Bus Holdings, has entered into an agreement to acquire Kelsian’s operations and depot at the Lea Interchange bus garage.

Stagecoach said the deal involves a £10m payment on completion of the acquisition and a further payment of £1m per annum over the next ten years.

The Lea Interchange depot operates eleven contracts on behalf of Transport for London (TfL) using a fleet of around 150 buses, with an annual turnover of around £38m. 

Martin Griffiths, Stagecoach CEO, said: “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.”

Stagecoach is a multi-modal UK public transport company with over 8,400 buses and coaches. 

Back in March, the London-listed company agreed to a £594.9m offer from a DWS-managed infrastructure fund.

To read the latest edition of the latest IPE Real Assets magazine click here.