Student Transportation Completes Acquisition
Wall, NJ — Student Transportation Inc. (TSX: STB) announced today it has completed the acquisition of the Mid-City Transit Corp. (“Mid-City”) based in Middletown NY. 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. Mid-City will add over 130 vehicles and annualized revenues of US$7.2 million.
“We welcome Mid-City to the Student Transportation family of companies. Mid-City has been serving the Middletown and surrounding communities for 75 years. The Millar family and staff will be continuing in operations which is exactly what we wanted. This is another local hometown company that fits very well with our rural strategy. I have known Stuart for many years and look forward to working with him,” said Gene Kowalczewski, Regional Director of Operations for Student Transportation. “This platform acquisition will allow us to focus on increasing regional density in the area,” continued Kowalczewski.
“I am pleased that our company has become part of the Student Transportation family which really is a family business. We look forward to maintaining the excellent service our customers expect,” said Stuart Millar. “We will continue to run our operations with a local face and brand, emphasizing our strong commitment to safety and the local communities.”
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.
National School Boards Association’s (NSBA) 2010 Annual Conference
Student Transportation is proud to be exhibiting at this year’s 70th NSBA conference on April 10-12 at the McCormick Place, West Hall in Chicago, IL. With more than 1,500 school district representatives in attendance, NSBA 2010 is the premier conference for school district representatives from all over the country. In our booth #757, we will show the quality of service and level of commitment we can bring to communities who choose to contract with us and tell our story of how Student Transportation’s services can benefit cash-strapped districts through our $100,000,000 Education Stimulus Plan.
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.
Student Transportation Inc.
Denis J. Gallagher
Chairman and Chief Executive Officer
Patrick J. Walker
Executive Vice President and Chief Financial Officer