ComfortDelGro moved to expand its Australian footprint further with a planned acquisition of New South Wales bus operator B&E Blanch for A$28.3 million, or around S$27.32 million, the transportation company said Tuesday.
Blanch has a fleet of 48 buses and coaches, operating under the brands Blanch’s Bus Company and Brunswick Valley Coaches, providing dedicated route and school bus services as well as charter services, ComfortDelGo said in a filing to SGX.
The purchase price is 7.6 times earnings before interest, tax, depreciation and amortization, or EBITDA, the filing said. The deal will be financed with a combination of debt and internal funds, it said.
The deal marks ComfortDelGro’s sixth acquisition in Australia in the last 12 months, and its fifth in New South Wales, the filing said.
Yang Ben Seng, ComfortDelGro’s managing director and CEO, said the company has been actively pursuing expansion in Australia.
”We are confident of its continued capacity for growth — not just in the cities we operate in, but new ones as well,” he said in the statement.
The deal follows ComfortDelGro’s A$190.9 million acquisition of Buslink Group, the transportation company’s largest acquisition in Australia.
Once the B&E Blanch deal is completed, ComfortDelGro will have 1,550 vehicles in New South Wales, the company said.