National Express Group PLC to Acquire the c2c rail franchise
Further to the announcement on 11 January 2017 that National Express Group PLC ("National Express") had reached an in principle agreement for Trenitalia to acquire the c2c rail franchise, National Express is pleased to announce that the transaction completed on 10 February 2017, with Trenitalia assuming immediate responsibility for operations.
Completion of the acquisition was triggered after the Department for Transport granted final consent to proceed.
The total consideration for the franchise was £72.6 million, resulting in a small net profit for National Express. In addition, Trenitalia's parent company, FS Italiane, paid £35.0 million to settle an existing intercompany liability due from the franchise at the date of sale.
Dean Finch, CEO of National Express Group, said: "I am pleased we have closed this deal and thank all those involved in making it possible. This sale provides National Express with the opportunity to invest further in our strong pipeline of growth opportunities in markets where we consistently receive strong returns.
"I wish our former c2c colleagues and Trenitalia all the best for the future as they take control of consistently the best performing franchise in the country."
National Express will issue its Full Year Results on 23 February 2017 and will provide more detail on the financial implications of this acquisition in this statement.About c2c
c2c operates services between Fenchurch Street and Shoeburyness, serving 26 stations in East London and South Essex.
c2c has consistently delivered the best performance in the UK rail industry, holding the UK records for annual punctuality (97.5%) and 4-weekly punctuality (98.8%) by a franchised train operator.
About National Express Group
National Express Group is a leading public transport operator with bus, coach and rail services in the UK, Continental Europe, North Africa, North America and the Middle East. The Group has a fleet of over 27,000 vehicles and more than 867 million journeys are made on National Express Services each year. National Express Group is quoted on the London Stock Exchange (NEX.L), and is a constituent of the FTSE 250 with 2015 underlying revenue of £1.9 billion. Further information on National Express Group can be found at: http://www.nationalexpressgroup.com.