Oct. 17, 2011
Student Transportation Inc. ("STI") (TSX, NASDAQ: STB),
's third-largest provider of school bus transportation services, today announced it has completed the acquisition, after the previously announced letter of intent, of School Transportation Services (STS) based in
Passaic County, New Jersey
. The acquisition will add over 90 vehicles and annualized revenues of just over
. The Company utilized availability under its current senior credit facility to fund the acquisition. Management expects the deal to be immediately accretive to shareholders of its common stock. The transaction and closing were contingent upon meeting certain conditions and receiving various consents and renewals, which have been obtained.
"With this acquisition we have completed the last of four previously announced Letters of Intent we signed in July," said
, Chief Operating Officer. "STS is a family owned and operated business for over 40 years. This deal complements the service of our existing North Jersey locations and creates synergies in operations with facilities and additional assets under management." Vaughan added, "We continue to be extremely selective in our approach to growth and have focused on operations that are synergistic and or will create new platforms for our continued managed growth. The "conversion" season is picking up again and we anticipate some of the 10,000 school districts who own and operate their own fleets to be calling us looking for creative solutions. They represent
$18 billion dollars
of school transportation spending in the U.S. alone. With budgets tightening, the capital and operating savings we can offer is something state and local elected officials along with school administrators have to consider."
The company has reported that fiscal year 2012 revenues are currently projected to reflect a 12 percent year-over-year increase with the new business secured to date.