Highland Council to acquire D&E Coaches
Highland Council has announced that it intends to acquire the entire shareholding of D&E Coaches Limited.,
Provision of home to school transport, for which the council widely uses coach firm D&E, is a high-cost statutory function, the local authority says, which has caused significant budget pressures in recent years.
The acquisition of the company - following a period of negotiation and due diligence, it says - will enable it to “accelerate provision of public transport services, achieve operational cost efficiencies and reduce the risk of future contract cost increases”.
The council already operates its own bus service which has been slowly expanding over recent months.
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The council’s says that it intends that the company will continue to be run on a business-as-usual basis, with further details will be announced on the satisfactory completion of all due diligence.
Vice convenor of the council and chairman of the economy and infrastructure committee, Councillor Ken Gowans, said: “I am delighted that negotiations have reached this stage, and as we approach completion, I would like to reassure customers, staff and suppliers that the transition in ownership will be handled as smoothly as possible.
“Discussions continue with the company management team, and I am genuinely excited for future public transport opportunities in the Highlands as a result of this expansion of our service.”
Donald Mathieson, D&E Coaches’ owner/ managing director said: “D&E Coaches has been in business for almost three decades and we feel as a family firm that that we have taken the company as far as we can.
“Moving forward, we feel that the acquisition of D&E Coaches by The Highland Council is the best move for the company and everyone concerned, including our staff and customers. We are also pleased that the company will move into local authority/public ownership.”
