British Bus Limited

Activity
Bus company
Acquired
May 1994
Realised
Aug 1996
Sector
Business Services

Business
In May 1994 British Bus was one of the three largest bus operators in the UK, following the privatisation and restructuring which reshaped the industry in the early 1990s. The company wished to pursue an aggressive acquisition strategy, having identified a large number of bus companies available for purchase at attractive prices.

Strategy
Cinven assisted British Bus achieve its acquisition aims and reorganise its funding structure. By means of its acquisition programme, internal reorganisation and increased economies of scale, the management aimed to achieve a public market flotation in a relatively short space of time, providing investors with significant gain on their investment.

Outcome
Following a successful series of acquisitions, which substantially increased the size and profitability of the company, in August 1996 British Bus was sold to the Cowie Group plc who were already represented in the Bus industry.

Multiple achieved on investment: 1.8x