LONDON (ShareCast) - (Sharecast News) - FirstGroup announced on Monday that its wholly-owned subsidiary First South West has acquired the remaining 50% shareholding in its Somerset Passenger Solutions (SPS) joint venture.
The FTSE 250 passenger transport operator said the shares were acquired from JJP Holdings South West, giving it control over the business going forward.

It said the consideration, being funded from its existing cash resources, was £8.4m paid on completion, with potential deferred consideration of up to £1.6m if certain conditions were met.

SPS, which was launched in 2016 as a joint venture with 50-50 ownership between First South West and Somerset-based JJPH, operates the contract to provide transport for workers employed at the Hinkley Point C nuclear power station near Bridgwater.

"The company has grown in accordance with the increasing amount of work on site and now employs around 450 people running a 156 vehicle-strong operation, delivering shuttle services seven days a week to and from Hinkley Point C," the board said in its statement.

"The business has annual revenues of approximately £37m.

"The purchase of the remaining 50% of SPS shares forms part of the First Bus strategy to develop and grow its share of the business-to-business services market."

At 0904 BST, shares in FirstGroup were down 0.83% at 89.25p.

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