Greyhound Bus Sells To Germany’s FlixMobility For $172 Million
The largest motor coach operator in the United States - and one with local ties to the Northland - has a new owner. German transportation company FlixMobility announced their intent to purchase Greyhound's bus operations in the United States.
According to news sources, the sale price of $172 million comes with an initial cash payment of $140 million. The remaining $32 million will "be paid installments over 18 months".
The move solidifies FlixMobility's transportation business - especially in the United States. Outside of this country, "FlixBus Global serves more than 2,500 destinations in 36 countries...with 400,000 daily connections". As the company currently operates, Greyhound serves "approximately 2,400 destinations across North America, with nearly 16 million passengers each year".
For many in the Northland, Greyhound is a familiar name and a part of our history. The bus company that came to be known as Greyhound first got its start on the Iron Range - in Hibbing - in 1914. The name Greyhound came later in 1929. Over the years, the brand and the buses have become an iconic part of U.S. pop culture, featured in books, television shows, and movies. In many ways the company name is so familiar that it has become an eponym for buses in general.
Prior to selling to FlixMobility, Greyhound Lines, Inc. has been based in Dallas, Texas since 1987. It's been owned by Scotland-based FirstGroup PLC since 2007. News sources are sharing that FirstGroup will "keep some Greyhound related property and lease it back to the buyer" - a not uncommon practice in business transactions.
Industry experts expect that this purchase by FlixMobility will increase and solidify their transportation business in the United States. The additional footprint in the continental U.S. will allow the company to expand its operations.
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