National Express owner Mobico Group PLC (LSE:MCG) has announced progress towards the sale of its North America school bus business and narrowed profit guidance for the year.
Most required consents and approvals have been secured for the school bus sale to I Squared Capital, with only the US Surface Transportation Board approval remaining. This is expected to allow completion early next month.
Expected upfront net proceeds are around $365-$385 million (£275-$290 million), with the final figure to be confirmed at closing.
Excluding any contribution from the school bus business for the period it remains owned, Mobico said it expects adjusted operating profit for the fiscal year to be in the range of £180 million to £195 million.
Following the transaction, the group said it will update on anticipated cash flow and leverage. Mobico reported strong liquidity and no significant debt maturities until the second half of 2027, with the proceeds from the sale expected to cover these maturities.