ComfortDelGro is expanding its footprint in Britain through the acquisition of a bus and coach operator in South Wales.
The transport group announced yesterday that its wholly owned subsidiary, Braddell, is acquiring all the shares of New Adventure Travel (NAT Group).
The purchase consideration is about £13.4 million (S$24.6 million), which translates into a valuation of 5.5 times earnings before interest, taxes, depreciation and amortisation of NAT Group, ComfortDelGro said.
The acquisition will be financed using internal funds.
ComfortDelGro currently operates about 1,700 vehicles in London through another wholly owned subsidiary, Metroline.
"With this addition of NAT Group, we are broadening our footprint into Wales, and expanding the bus operations outside of London, which has always been our strategic intent," ComfortDelGro managing director and chief executive officer Yang Ban Seng said.
NAT Group currently operates a fleet of 117 buses and coaches across four depots in Cardiff, Swansea, Newport and Pontypridd.
Based near the city centre of Cardiff, it operates commercial and contracted scheduled bus services. It also offers transport services to professional sports teams, including Swansea City Football Club.
ComfortDelGro shares closed at $2.03 yesterday, down three cents.