October 26, 2022
Transdev to Acquire First Transit to Deliver Safe, Sustainable, and More Innovative Solutions to Communities
Transdev has signed an agreement to acquire First Transit, Inc., creating an even stronger innovation-driven provider of sustainable mobility and public transportation services in the U.S. and Canada.
Together, Transdev and First Transit will be better positioned to provide safe, cost-effective and environmentally-friendly public transportation services across a variety of transit modes including Fixed Route Bus, Paratransit, Shuttle, Rail, Light Rail and Fleet Maintenance. The transaction will enhance Transdev and First Transit’s ability to support public transit authorities in the U.S. and Canada in the energy transition towards decarbonization and provide affordable mobility solutions to local communities.
The combined entity will benefit from the competencies and expertise from each company and be ideally positioned to capture the organic new growth opportunities resulting from the increasing need for renewed mobility solutions.
Thierry Mallet, Chairman and CEO of Transdev Group, declared: “By joining forces with First Transit, Transdev will be adding new services and expertise to its U.S. and Canada operations. This acquisition is highly complementary in terms of regional presence and solutions offered. It is also aligned with Transdev Group’s Moving Green decarbonization strategy, and shows our willingness to continue investing in operational technology and fleet decarbonization to provide even safer and more environmentally-friendly transportation services to communities in the two countries.”
Laura Hendricks, CEO of Transdev U.S. stated: “I am excited about the opportunity to combine the talents and expertise of Transdev U.S. with First Transit. This move will greatly benefit our clients and passengers with their daily mobility needs by delivering high-quality services and allowing a faster transition to sustainable transportation. We look forward to welcoming First Transit’s employees to Transdev and showing new clients and partners how we will best deliver on safe, sustainable mobility solutions.”
An improved ability to serve customers; enhanced opportunities for employees
Combining Transdev’s expertise in Fixed Route Bus and presence in Rail with First Transit’s complementary positions in Shuttle services and Paratransit will provide an enhanced public transportation offer in the U.S. and Canada and will further enable the development of mobility services within local communities in the two countries. It will also unlock further growth potential in the ongoing energy transition towards cleaner Zero Emission Vehicle fleets for the public bus sector. The new entity’s focus on innovation will notably see a growing share of electric buses, further contributing to the reduction of its carbon footprint. Transdev’s Moving Green decarbonization strategy targets, by 2030, a 30% reduction in greenhouse gas emissions and a 50% increase in alternative fuel fleets (gas, biogas, biofuels, electric, hydrogen) versus 2018 levels.
This transaction will also provide new professional development opportunities for employees of both companies.
Closing conditions and expected transaction timing
The transaction is subject to the customary closing conditions and regulatory approvals in the U.S. and Canada. Until the closing of the deal, both companies will continue to operate independently.