Dallas-based iconic bus company Greyhound Lines Inc. is being sold to Europe’s largest long-distance bus network. Greyhound, a subsidiary of British transportation company FirstGroup since 2007, is now being sold to FlixMobility.
The deal was announced early Thursday by FlixMobility with Greyhound’s owner FirstGroup plc. FlixMobility is the company that operates FlixBus and FlixTrain. The company, based in Munich, said in its announcement that the combination of Greyhound and FlixMobility would improve service on intercity bus lines which it said was helpful for communities and essential workers during the pandemic.
The sale carries an enterprise value of $46 million, plus an additional $32 million in deferred payments. As part of the deal, FlixMobility is purchasing Greyhound’s fleet, trademarks, and other assets.
According to a report from Dallas Morning News, FlixMobility founder and CEO André Schwämmlein said that the two transportation giants would initially operate independently, so Greyhound customers can expect business to go as usual.
He also revealed that there are no rebranding plans in view as Greyhound already has a solid customer base that will help FlixMobility grow. Schwämmlein, however, said that the company would eventually expand the Greyhound bus network.
In a statement to the Dallas Morning News, Schwämmlein said the company needs to learn more about Greyhound before creating an expansion plan.
FlixMobility was established in 2013 by Schwämmlein, Engert and Daniel Krauss. Now, it has become Europe’s largest intercity bus network, with a record of connecting more than 62 million people to their destinations in 2019.
The company expanded its operations to the United States in 2018 with FlixBus, which has destinations across the Southwest, including Los Angeles, Las Vegas, and Phoenix.
