FirstGroup to Offload Depots, Bus Fleet Amid Bus Franchising Push

09:12 AM EST, 11/02/2026 (MT Newswires) -- FirstGroup (FGP.L) agreed to sell its assets to the West Yorkshire Combined Authority for 109 million pounds sterling as it looks to transition to a bus-franchising model in West Yorkshire, UK. The planned sales include five freehold depots and fixed assets, and a bus fleet comprising 251 diesel vehicles and 79 electric vehicles, the British public transport operator said Monday. The depot sales have been completed, and the fleet sales will occur as the three West Yorkshire franchise tranches go live, planned between May 2027 and October 2028. The company secured two bus franchise contracts in Bramley and Huddersfield under the West Yorkshire franchise program. The contracts are due to commence in May 2027, with a core term of five years and an option to extend for another two years. The combined annual revenue from the contracts is estimated at 40 million pounds. FirstGroup expects a post-tax gain of 30 million pounds from the depot sales. The final number of fleet sales and sale proceeds depend on the extent to which the company is awarded contracts under the second and third tranches.