FirstGroup Expands Irish Presence with Matthews Coach Hire Acquisition

FirstGroup, a leading provider of public transport services, has bolstered its Irish operations with the acquisition of Matthews Coach Hire, an established and profitable bus operator. The deal, announced on 2025-02-04, complements FirstGroup's existing Aircoach business and provides increased access to the non-airport commuter market in Ireland, as well as the opportunity to diversify into local B2B markets.

Matthews Coach Hire operates a fleet of over 40 vehicles, including two newly-acquired electric coaches, and offers six licensed, commercial routes between the rapidly growing commuter towns of Drogheda and Dundalk to the northeast of Dublin. The acquisition includes the operator's freehold depot, located between Dublin and Belfast, which will be utilized by both Aircoach and Matthews Coach Hire, reducing the need for separate facilities and lowering overall costs.

FirstGroup's acquisition of Matthews Coach Hire aligns with its strategic objectives, particularly in relation to its commitment to sustainability and modal shift. By expanding its presence in the non-airport commuter market and B2B markets, FirstGroup can drive modal shift by encouraging more people to use public transport instead of cars or air travel. Additionally, the acquisition supports FirstGroup's goal of operating a zero-emission First Bus fleet by 2035, as Matthews Coach Hire's fleet includes two electric coaches.

The acquisition also provides FirstGroup with the opportunity to invest in decarbonization efforts, such as charging infrastructure and electric vehicle (EV) technology, further reducing its carbon footprint and contributing to a more sustainable future. Moreover, the integration of Matthews Coach Hire's operations into Aircoach can lead to potential synergies and cost savings through increased route network and market access, diversification into local B2B markets, operational synergies, and decarbonization efforts.

FirstGroup's acquisition of Matthews Coach Hire has significantly enhanced its competitive position in the Irish bus market. By acquiring an established, profitable business with a fleet of over 40 vehicles, including two electric coaches, FirstGroup has expanded its presence in the non-airport commuter market and widened its stakeholder network. This acquisition complements its existing Aircoach business and provides an opportunity to diversify into local B2B markets.

However, FirstGroup may face challenges from rival operators such as Go-Ahead Group and National Express Group in the Irish bus market. These competitors also operate bus services in the UK and Europe, and they may respond to FirstGroup's acquisition by increasing their own services or routes in Ireland to maintain market share and compete with FirstGroup's expanded offerings. To maintain its competitive edge, FirstGroup should focus on continuing to invest in its fleet, enhancing its customer experience, expanding its B2B offerings, and monitoring the market for any competitive threats or opportunities.

In conclusion, FirstGroup's acquisition of Matthews Coach Hire has strengthened its position in the Irish bus market and supports its strategic objectives of driving modal shift and sustainability. By integrating Matthews Coach Hire's operations into Aircoach, FirstGroup can achieve potential synergies and cost savings, further solidifying its competitive position in the Irish market.