$200m price tag is tip for Coast’s TAG
GOLD Coast transportation giant Transit Australia Group is for sale, reportedly for at least $200 million.
TAG, launched by brothers Tony and Joe Calabro in 1989 after they purchased Surfside Buslines, today is the largest privately owned public transport operator in Queensland, with a staff of 1400 operating a fleet of 700 buses. It also runs Sunbus on the Sunshine Coast and has manufacturing and engineering businesses including Bustech.
In recent years it has also expanded its international footprint, particularly in the Middle East where it signed a lucrative deal to provide electric buses for the new city of Dubai South .
UBS Investment Bank is handling the sale, confirmed by a TAG spokesman who said an “exciting chapter” had opened in the company’s history.
A UBS spokesman declined to comment on the sale.
Likely buyers are reported to be EQI, the London-based private equity and infrastructure investor 3i, Transdev, Singaporean group CDC and Keolis Downer.
TAG has not only expanded its presence internationally, but also in Australia.
Bustech last year secured a $45 million contract to supply Metro Tasmania with 100 low-emission buses, partnering with Tasmanian company Elphinstone to utilise local capabilities while providing a boost to local manufacturing.
The contract, with the Tasmanian Government’s transport arm Metro Australia, is the largest investment in public transport in the state’s history.
An alliance with South Australian company Precision Components will build operational electric urban buses for trial in Adelaide’s public transport network.
Earlier this year TAG announced a partnership with French firm EasyMile.
It has agreed to operate and maintain EasyMile’s EZ10 driverless electric shuttle buses from its Adelaide manufacturing hub, run by Precision Buses.
Trial dates and locations are scheduled for later this year.
The plans include the development of an autonomous version of TAG’s ZDi electric urban bus.
TAG chief executive Michael McGee did not return calls yesterday.