Go Bus, New Zealand’s leading bus transport business, has finalised an agreement to acquire Invercargill-based McDermott Coachlines.
The transaction was completed on Friday, July 30, 2021.
Go Bus is the country’s largest and most diverse bus operator, with dedicated bus and coach services across 38 depots from Auckland to Invercargill. Go Bus currently operates approximately 1800 vehicles and employs more than 2100 people throughout New Zealand, including 85 in Southland.
McDermott Coachlines has a fleet of 81 buses and employs 76 staff operating school and charter services throughout the Southland region with depots in Winton and Invercargill, and smaller satellite sites around Southland.
Go Bus Transport CEO Calum Haslop says he is looking forward to welcoming the McDermott team to the Go Bus family.
"The acquisition of McDermott’s will give us the opportunity to expand our range of services significantly in the lower South Island.
"Our intention is to continue to operate the McDermott school services through to the end of the year on their current contracts, and then deploy all staff and vehicles onto the new Ministry of Education contracts that Go Bus was recently awarded in the area. These new contracts commence in January 2022 and will run for between nine and 12 years. We will also continue to operate the separate school contracts at Aparima and Waianiwa and McDermott’s existing charter business.
Calum says all McDermott staff will carry on with their current roles as usual, with no changes to pay rates or conditions.
McDermott Coachlines family shareholders decided it was a good time to exit the business and saw Go Bus as the logical buyer.
"This is a very positive step for the business, our staff and customers. There are shared values between the two companies, particularly around family ethos and customer service. We were also impressed with Go Bus’s broad experience delivering bus and coach services throughout New Zealand over many years." says manager of McDermott Coachlines Alister McDermott.
"It will be business as usual for our Winton and Invercargill depots with the same team delivering services in Invercargill and Southland looking after our passengers."
"We are excited about the opportunities to grow our business with the acquisition of McDermott Coachlines and are looking forward to McDermott Coachlines becoming part of the Go Bus family," says Calum.
