FirstGroup Expands Bus Portfolio with Acquisition of UK Sightseeing Operations

FirstGroup plc (LSE:FGP) has purchased the UK sightseeing bus businesses of RATP Développement SA in a deal valued at roughly £17 million, strengthening its First Bus presence in both London and Bath.

The transaction covers sightseeing services currently operated under the Tootbus brand and includes 63 vehicles—42 based in London and 21 in Bath—along with a freehold depot in Wandsworth, a leased depot in Keynsham, and around 190 staff across the two sites.

In London, the acquisition provides greater diversification within the capital’s transport landscape and creates an opportunity for FirstGroup to enhance its service offering. The company also plans to pursue additional Transport for London (TfL) red bus route contracts using the Wandsworth depot as a base.

For Bath, the deal similarly broadens FirstGroup’s local operations and secures extra depot capacity to support future growth.

The acquired businesses generated £15.9 million in revenue and posted an operating loss of £0.6 million for the year ended December 31, 2023. FirstGroup anticipates a small loss in the first full year of ownership but expects the business to return to profitability thereafter. By FY 2029, the company projects around £30 million in annual revenue, supported by expansion in First Bus London’s TfL contract portfolio.

The acquisition is being funded through existing cash reserves. As a result, FirstGroup now expects FY 2026 adjusted net debt of £140–150 million.

Graham Sutherland, Chief Executive Officer of FirstGroup, 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.”

Bill Cahill, MD of First Bus London, and Doug Claringbold, MD of First Bus West of England, will lead the integration and development of the newly acquired operations.