Student Transportation of Canada (STC) of Barrie has announced the July 15 acquisition of Leuschen Bros., Ltd., a Sudbury school bus operator.
The deal is contingent on certain conditions being met and the receiving of various consents and renewals.
The purchase price has not been disclosed. STC funded the deal through a credit facility.
Leuschen will add more than 250 vehicles from three new locations and increase STC's net revenues by $12 million.
"Leuschen is a fantastic company and a great acquisition for us," said STC Chairman and CEO Denis Gallagher in a statement.
"The company adds Canadian revenues and cash flows which increase the natural hedge for our continued dividend program. It also increases regional density to our management and operations in Ontario and opens up a new, strategic area of expansion for us in the province."
Leuschen's main school bus transportation contract was recently tendered and currrently runs through June 2016. The Sudbury company also operates the city's Handi-Transit bus system.
Student Transportation Inc. is North America's third-largest school bus transportation services company with more than 6,500 vehicles.
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