Next Capital has successfully sold Forest Coach Lines to ComfortDelGro Corporation for AUD 110 million after significantly enhancing the company's operational capabilities and financial performance since their acquisition.

Target Information

The target of this acquisition is Forest Coach Lines, a company with a rich history dating back to 1930 when it was established by brothers Trevor and Eric Royal in the northern suburbs of Sydney. At the time of Next Capital's interest, Forest was still family-run, managed by the third generation, including David Royle, who served as joint CEO. Throughout the years, Forest has developed a strong reputation as a reliable bus operator, furthermore solidifying its significance in the Australian transport sector.

Next Capital recognized Forest as a prime candidate for growth due to its strategic location in Sydney and its favorable prospects for expansion in a growing market. Prior to the acquisition, KPMG was appointed by the Royle family to oversee the sale process, and Next Capital engaged Greenstone Advisory to assist in their acquisition of the business, leading to a collaborative effort to keep the company within the Royal family through a consortium structure.

Industry Overview in Australia

Australia's bus transport industry remains notably fragmented, with the top ten operators commanding only one-third of the market share among approximately 1,000 smaller players. The complexity of the market structure arises from diverse components such as schedu