Company Added to Student Transportation's Growing New Jersey Family
WALL, NJ, March 18 /CNW/ - Student Transportation Inc. (TSX: STB) announced today it has completed the acquisition of the Wilkerson Transportation Company, Inc ("Wilkerson") based in Morristown NJ. The transaction and closing was contingent upon meeting certain conditions and receiving various consents and renewals, which have been obtained. Management expects the deal to be immediately accretive to shareholders of its common stock.
Wilkerson is the company's 36th acquisition since inception and will add annualized revenues of US$3.0 million. The Company utilized availability under its senior credit facility to fund the acquisition.
"This acquisition marks our second this fiscal year in the Northern New Jersey area. It tucks into one of our existing operations which came with the recent Jordan Transportation acquisition we completed in September. Our growth initiative in this area of New Jersey is a testament to the team we have in place who know the market very well. We continue to see additional opportunities to expand our services through further acquisitions and conversions," said Michael J. Kennedy, Chief Operating Officer of Student Transportation's Atlantic Region.
"We welcome the Wilkerson employees into our family of companies and we have plans in place for a smooth integration."
Sun Mergers & Acquisitions, based in Hasbrouck Heights, NJ acted as sole financial advisor for Wilkerson.
About Student Transportation Inc.
Founded in 1997, Student Transportation Inc. is North America's third-largest and fastest-growing provider of school bus transportation services, operating more than 6,300 vehicles. Student Transportation Inc. family of local companies delivers safe, reliable and cost-effective transportation solutions to school districts throughout the U.S. and Canada. Services are delivered by drivers, dispatchers, maintenance technicians, terminal managers and others who are caring members of their local communities. For more information, please visit www.rideSTA.com.
About Sun Mergers & Acquisitions
Sun, in conjunction with its affiliate, Sun Business Valuations, is a full-service professional business intermediary firm specializing in handling all aspects of the confidential sale, merger, acquisition and valuation of privately held middle-market companies, along with exit strategy planning and transaction consulting. For more information, please visit www.sunmerger.com.
This news release contains "forward-looking statements" within the meaning of applicable securities laws, which reflects the expectations of management regarding Student Transportation Inc. results of operations, expense levels, cost of capital, financial leverage, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the Student Transportation Inc. growth strategy and cash distributions. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "track", "targeted", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. These forward looking statements reflect Student Transportation Inc. current expectations regarding anticipated future events, results, circumstances, performance or expectations, which are not historical facts. Forward looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at which or by the performance or results will be achieved. A number of factors could cause our actual results to differ materially from the results discussed, expressed or implied in any forward-looking statement made by us or on our behalf, including, but not limited to the factors discussed under "Risk Factors" in our Annual Information Form. These forward looking statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE STUDENT TRANSPORTATION INC.
For further information: For further information: INVESTOR CONTACTS: Patrick J. Walker, Executive Vice President and Chief Financial Officer; Keith P. Engelbert, Director of Investor Relations, (732) 280-4200, Email: ir@rideSTA.com, Website: www.rideSTA.com