Arriva acquires MK Metro Ltd

Arriva plc, the European transport services Group, has acquiredPremier Buses Limited, the holding company of MK Metro Limited (MKMetro), of Milton Keynes for a net cash consideration of £5.6million.

The consideration consists of £6.8 million for shares inMK Metro's holding company Premier Bus Limited, less inherited cashin the company of £1.2 million.

MK Metro operates commercial and tendered services in MiltonKeynes, in Bedfordshire and in Northamptonshire. The company has260 employees, 120 vehicles and in 2005 reported an annual turnoverof £8.6 million.

In the south of England, Arriva operates over 1,400 buses from24 locations outside London.

Mike Cooper, managing director of Arriva UK Regions, said:

This acquisition gives Arriva a good opportunity toexpand our presence in the south of England. Milton Keynes'population is set to expand over the next five years, giving usstrong growth prospects.