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Dallas-based Greyhound Lines Inc., the iconic bus company that traces its history to 1914, is being sold to a German company that operates Europe’s largest long-distance bus network.
FlixMobility, which operates FlixBus and FlixTrain, announced the deal early Thursday with Greyhound’s British owner FirstGroup plc. The Munich-based company said the combination will improve service on intercity bus lines, which it described as “a lifeline during the pandemic for communities and essential workers.”
The deal includes Greyhound’s fleet, trademarks and other assets and carries an enterprise value of $46 million, plus another $32 million in deferred payments.
The COVID-19 pandemic cut into Greyhound’s passenger demand in a big way, forcing the bus operator to reduce its schedule last year. The company posted a $12 million operating loss in fiscal 2021 for the 12-month period through March.
Its revenue tanked from $766 million in fiscal 2020 to $422.6 million in fiscal 2021.
FlixMobility founder and CEO André Schwämmlein said in a statement he is confident the company can replicate its global success with Greyhound as the bus “business continues to recover from the effects of the pandemic.”
The FlixBus global network serves over 2,500 destinations in 36 countries outside of the U.S. with 400,000 daily connections. Greyhound connects about 2,400 destinations across North America with nearly 16 million passengers each year.
“Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions,” Schwämmlein said. “A compelling offering will draw significantly more travelers away from private cars to shared intercity bus mobility.”
Fluctuations in gas prices, spikes in car prices and climate change concerns all serve to increase interest in buses as an alternative to individual car use, according to FlixMobility. The company has piloted electric buses in Germany, the U.S. and France.
FlixMobility was started in 2013 by Schwämmlein, Engert and Daniel Krauss when Germany opened its bus market to competition. FlixBus has grown into Europe’s largest intercity bus network, connecting more than 62 million people in 2019 to their destinations.
FlixBus USA launched in 2018 with destinations across the Southwest, including Los Angeles, Las Vegas and Phoenix.
Greyhound has been a subsidiary of British transportation company FirstGroup since 2007, but has been based in Dallas since 1987.