Marwyn European Transport, a subsidiary of Marwyn Management Partners, will acquire German bus operator Axel Tucks for 3.75 million euros ($5.38 million), the company announced Friday. Axel Trucks operates more than 100 buses within the Rhine-Ruhr region of South West Germany. Marwyn European Transport was launched in February 2011.
Marwyn Management Partners plc (“MMP”) today announces that its subsidiary Marwyn European Transport plc (“MET”) has agreed to acquire all of the issued share capital of Axel Tucks GmbH (“Tucks”), the German bus operator, together with related assets and operations, for an initial consideration of EUR3.75m payable in cash.
Tucks currently operates more than 100 buses within the Rhine-Ruhr region of South West Germany, incorporating a diversified mix of school buses, social services transport and local public buses on behalf of a number of local authorities. In the year ended 31 December 2010, Tucks generated unaudited revenue of approximately EUR5.0m and EBITDA (prepared consistently with MET plc’s accounting policies) of EUR0.9m.
Tucks’s current management team will remain in place following completion of the acquisition. Additional consideration payments of up to EUR1.25m in cash may become payable subject to the achievement of specific financial performance targets.
David Leeder, Chief Executive Officer of MET, said: “We are pleased to complete the acquisition of Tucks as the first step in building an independent transport group of real value. Tucks is well positioned to form the basis of a regionally focussed German bus group and we look forward to working with existing management to grow the business through acquisition and through new contract opportunities.”
MET was launched by MMP in February 2011 to pursue acquisition opportunities within the European transport sector. The MET management team continues to review a number of other acquisition opportunities.
Mark Watts, Executive Director of MMP, said: “The German market has a number of interesting characteristics that play to the outstanding operational strengths of the MET management team and their determination to deliver a successful buy and build strategy. We look forward to working with them to build the group following the successful completion of this initial transaction.”