Go Ahead Group
Go Ahead Group dips its toes into US school bus market
FTSE 250 bus, rail and air services group Go-Ahead Group (LSE: GOG), has decided to enter the North American school bus market through a 50/50 joint venture with Cook-Illinois, a family owned and operated school bus contractor in the United States. Cook-Illinois has over 2,000 buses in 200 school districts operating in the Chicago area.
The joint venture will focus on winning contracts outside of Cook-Illinois’ current area of activity.
"This JV is an exciting new venture for Go-Ahead. It represents an excellent, low risk and financially disciplined way for us to gradually build an operation in this strategically attractive market,” stated Keith Ludeman, Chief Executive of Go-Ahead. “The North American yellow school bus market shares many of the same characteristics as our UK bus operations and we are delighted to be working with Cook-Illinois, one of the largest school bus fleet operators in the United States. We both believe passionately in running high quality operations with a strong local focus and identity. The JV will draw upon the expertise of both of our organisations to explore potential opportunities."
Go-Ahead also was keen to stress that its principle area of focus was still the UK market, where it is one of the leading bus and rail operators.
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