FirstGroup has agreed to sell five bus depots and a fleet of 330 buses in West Yorkshire to the West Yorkshire Combined Authority for £109m, the transport operator said on 2 November 2026.
Why West Yorkshire Combined Authority is buying FirstGroup plc (West Yorkshire bus depots and fleet)
The sale reflects WYCA's move to a franchising model, under which the authority will own depots and vehicles and contract operators to run services. Chief executive Graham Sutherland said the group looked forward to delivering high-quality, sustainable bus services in partnership with the authority.
Deal terms and financing
The depots, sold with their fixed assets, have been transferred and leased back to FirstGroup at a peppercorn rent. The 251 diesel and 79 electric buses will transfer as each franchise tranche starts. FirstGroup expects about £55m of cash inflow in FY27, further adjusting items in FY28 and FY29 depending on later contract awards, and about £10m of cash benefits from moving roughly 130 buses elsewhere in the group.
Market context
FirstGroup won franchise contracts in Bramley and Huddersfield in the first of three WYCA tranches, starting in May 2027 for five years with a two-year extension option. First Bus will continue to run commercial routes until each franchise begins. FirstGroup shares rose 4.3% to 226.20p.
