British bus and train operator FirstGroup PLC agreed to buy the parent company of bus firm Greyhound Lines, Inc. in an all cash deal worth $3.6 billion.
Under the terms of the agreement, FirstGroup will buy Laidlaw International, Inc. (NYSE: LI) shares for $35.25 each, 11 percent above Thursdayâ€™s closing price. The deal must be approved by shareholders of both companies and is subject to regulatory approval.
â€œFirstGroup's acquisition of Laidlaw will considerably enhance FirstGroup's existing activities in North America, which themselves have grown strongly since we first invested in the U.S. in 1999,â€ said Moir Lockhead, Chief Executive of FirstGroup in a statement.
In Laidlaw, FirstGroup acquires not only Greyhound but also its operating fleet of Yellow school buses. The British firm also has a strong presence in the North American school bus market.
Laidlaw shares closed up 9.02 percent, or $2.86, to a record high of $34.58 in Friday trading on the New York Stock Exchange. Firstgroup shares rose 4.3 percent to $11.45 on the London Stock Exchange.