Laidlaw

Laidlaw was a Canadian-founded transportation and services company whose principal operations eventually covered contracted school transportation, public transit, paratransit, intercity buses, sightseeing, emergency medical services and related support businesses in the United States and Canada. The business began in 1924, when Robert Laidlaw established a trucking operation in Hagersville, Ontario. It later moved well beyond trucking and developed into a highly acquisitive operator of services that had traditionally been provided either by local governments or by fragmented private contractors. The company’s major expansion phase began under Michael DeGroote. Laidlaw entered intercity and charter bus operations in the early 1970s and added Canadian contract school-bus operations in 1979. Its 1983 purchase of ARA Transportation established a significant position in the United States school-bus market and also brought the Wayne Corporation bus dealership into the group. By 1984, Laidlaw had exited trucking and was concentrating on transportation contracting and other service businesses. During the 1980s and 1990s, it assembled a broad portfolio through acquisitions of regional school-bus companies, public-transit contractors and ambulance operators. Acquisitions included Mayflower Contract Services in 1995 and National Bus Service in 1996. Laidlaw also pursued businesses outside passenger transportation. Laidlaw Waste Systems developed from the company’s expansion into solid-waste management, while the group’s medical-services activities grew through the purchase of MedTrans in 1993, American Medical Response and CareLine in 1998, and emergency-care businesses including EmCare and Spectrum Emergency Care. In the passenger sector, the 1998 acquisition of Greyhound Lines’ United States operations and Greyhound Canada made Laidlaw the owner of one of North America’s best-known intercity bus brands. The same year it acquired DAVE Companies, a paratransit specialist. This diversification and acquisition-led growth also created substantial financial exposure. Investments in Safety-Kleen and Greyhound produced heavy losses, and Laidlaw sought protection under Chapter 11 of the United States Bankruptcy Code in June 2001. The reorganized successor, Laidlaw International, Inc., emerged on June 23, 2003. Its common shares were subsequently listed on the New York Stock Exchange under the symbol LI on February 10, 2004. The reorganized company later disposed of its American Medical Response and EmCare operations. FirstGroup, a United Kingdom-based bus and rail transportation group with North American subsidiaries, agreed to acquire Laidlaw International in February 2007. Completion took place on October 1, 2007. The transaction combined First Student and Laidlaw Education Services, creating a school-bus contracting group that the reference material describes as representing approximately 40 percent of the contracted school-bus market in the United States and Canada. Laidlaw’s transit operations were folded into First Transit, while its education operations were integrated into First Student. FirstGroup discontinued the Laidlaw corporate name but retained the Greyhound brand. Laidlaw therefore survives mainly through successor operations and brands rather than as an independent company.

Laidlaw began in 1924 as a trucking business founded by Robert Laidlaw in Hagersville, Ontario. For several decades it operated within transportation, but the company’s later identity was shaped primarily by acquisitions and by the expansion of contracting models in services historically delivered directly by public agencies. Michael DeGroote became the central figure in the company’s expansion from the early 1970s. Laidlaw acquired a Canadian intercity and charter bus company in 1972 and entered Canadian contract school transportation in 1979. In 1983, its purchase of ARA Transportation gave it a substantial foothold in the United States school-bus sector and added the Wayne Corporation bus dealership. Laidlaw exited trucking in 1984 and concentrated on school buses, transit contracting and other service businesses. In 1988, it purchased a controlling interest in itself from Canadian Pacific Limited. Canadian Pacific disposed of its remaining 17 percent interest in 1997. During the late 1980s and 1990s, Laidlaw consolidated hundreds of smaller school-bus and public-transit contractors in Canada and the United States. Its expansion was not uniform: in some markets, school districts reversed outsourcing decisions and brought transportation operations back in-house. In Virginia, for example, public-school contracts in Petersburg, Norfolk and Hopewell were eventually converted to district operation. Laidlaw sold its remaining Norfolk-area transportation and school-contracting assets in 1991 after losing the Norfolk contract, and the Hopewell operation was later converted in 1996. The company also expanded into waste management. Laidlaw Waste Systems entered the United States market in 1978, and Laidlaw acquired Genstar Corporation in 1986. The solid-waste business was sold to Allied Waste Industries in 1996; Canadian operations were subsequently sold to USA Waste Services. These divestitures reflected the company’s continual reshaping of its portfolio. Emergency medical services became another major business. Laidlaw acquired MedTrans in 1993 and expanded that platform through numerous acquisitions. In 1998 it bought American Medical Response and CareLine, alongside EmCare and Spectrum Emergency Care. The same year it acquired Greyhound Lines’ United States operations, Greyhound Canada and DAVE Companies, a paratransit specialist. These transactions made Laidlaw a major operator across school transportation, public transit, intercity buses, paratransit and emergency services. The scale of the portfolio also increased financial risk. Losses connected with Safety-Kleen and Greyhound contributed to Laidlaw Inc.’s Chapter 11 filing in June 2001. The successor company, Laidlaw International, Inc., emerged from reorganization on June 23, 2003, and listed its shares on the New York Stock Exchange in February 2004. It later sold American Medical Response and EmCare. FirstGroup announced its acquisition of Laidlaw International in February 2007 and completed it on October 1 of that year. FirstGroup integrated Laidlaw Transit into First Transit and Laidlaw Education Services into First Student. The Laidlaw name was not retained as a corporate operating brand, although Greyhound continued under its own name. The transaction marked the end of Laidlaw as an independent company and transferred its principal North American transportation activities to FirstGroup.

• 2007

  Acquisition by FirstGroup

  [1]Laidlawen.wikipedia.org

  FirstGroup completes its acquisition of Laidlaw International on October 1, ending Laidlaw’s independent corporate existence.

• 2004

  New York Stock Exchange listing

  [1]Laidlawen.wikipedia.org

  Laidlaw International lists its common shares on the NYSE under LI.

• 2003

  Emergence from reorganization

  [1]Laidlawen.wikipedia.org

  Laidlaw International emerges as the successor to Laidlaw Inc.

• 2001

  Chapter 11 filing

  [1]Laidlawen.wikipedia.org

  Laidlaw Inc. files for protection under Chapter 11 after heavy losses associated with Safety-Kleen and Greyhound.

• 1998

  Greyhound and medical-services expansion

  [1]Laidlawen.wikipedia.org

  Laidlaw acquires Greyhound’s United States and Canadian operations, DAVE Companies, American Medical Response, CareLine, EmCare and Spectrum Emergency Care.

• 1996

  Waste-management divestiture

  [1]Laidlawen.wikipedia.org

  Laidlaw sells its solid-waste business to Allied Waste Industries and later transfers Canadian operations to USA Waste Services.

• 1993

  MedTrans acquisition

  [1]Laidlawen.wikipedia.org

  The purchase of MedTrans expands Laidlaw’s emergency medical-services operations.

• 1984

  Exit from trucking

  [1]Laidlawen.wikipedia.org

  Laidlaw leaves the trucking business and focuses on contracted transportation and related services.

• 1983

  United States school-bus expansion

  [1]Laidlawen.wikipedia.org

  Laidlaw acquires ARA Transportation and enters the United States school-bus transportation sector.

• 1979

  Entry into contract school transportation

  [1]Laidlawen.wikipedia.org

  Laidlaw acquires a Canadian contract school-bus business.

• 1972

  Entry into intercity and charter buses

  [1]Laidlawen.wikipedia.org

  Under Michael DeGroote’s leadership, Laidlaw acquires a Canadian intercity and charter bus company.

• 1924

  Laidlaw is founded in Ontario

  [1]Laidlawen.wikipedia.org

  Robert Laidlaw establishes a trucking service company in Hagersville, Ontario.

A large, acquisition-driven North American provider of outsourced transportation and emergency-service operations, serving public agencies, schools, passengers and healthcare-related customers.

• Contract school-bus transportation · 1979

  Laidlaw Education Services

  Laidlaw Education Services operated contracted school-bus transportation for school districts and other educational customers in the United States and Canada. It was one of the company’s core operating divisions and grew through the consolidation of regional contractors. Following FirstGroup’s acquisition, the business was merged into First Student.

• Contract public transit and paratransit

  Laidlaw Transit

  Laidlaw Transit provided contracted public transportation and related paratransit services for public agencies and communities. The division formed part of Laidlaw’s broader strategy of acquiring local operators and taking on services previously provided directly by government entities. It was merged into First Transit after the FirstGroup acquisition.

• Intercity bus transportation · 1998

  Greyhound Lines

  Greyhound Lines was Laidlaw’s principal intercity passenger-transportation brand after the 1998 acquisition of Greyhound’s United States operations. Laidlaw also acquired Greyhound Canada. Unlike the Laidlaw corporate identity, the Greyhound name was retained by FirstGroup following the 2007 transaction.

• Emergency medical services · 1993

  MedTrans

  MedTrans was a San Diego-based emergency medical-services operator acquired by Laidlaw in 1993. It operated across several United States states and was expanded through further acquisitions before Laidlaw added American Medical Response and other medical-services businesses to its portfolio.

• Solid-waste management · 1978

  Laidlaw Waste Systems

  Laidlaw Waste Systems represented the company’s solid-waste-management activities in the United States. The business developed from Laidlaw’s diversification during the late 1960s and 1970s and included the Genstar acquisition before being sold in 1996.

• 2007

  Sale to FirstGroupM&A

  Background

  Laidlaw International remained a major North American transportation operator after its reorganization, with businesses spanning school buses, transit and intercity buses.

  Action taken

  FirstGroup completed its acquisition of Laidlaw International on October 1, 2007.

  Aftermath

  Laidlaw Transit was merged into First Transit and Laidlaw Education Services into First Student. FirstGroup retired the Laidlaw name but retained Greyhound as a brand.

  Source

• 2001

  Chapter 11 reorganizationOther

  Background

  Heavy losses from investments including Safety-Kleen and Greyhound weakened Laidlaw after a prolonged acquisition program.

  Action taken

  Laidlaw Inc. filed for protection under Chapter 11 of the United States Bankruptcy Code.

  Aftermath

  The company emerged in 2003 as Laidlaw International, Inc., later returned to public trading and subsequently became the subject of FirstGroup’s acquisition.

  Source

• 1998

  Acquisition-led expansion into Greyhound and emergency careM&A

  Background

  Laidlaw sought to build a broad North American services portfolio through acquisitions.

  Action taken

  It acquired Greyhound’s United States and Canadian operations, DAVE Companies, American Medical Response, CareLine, EmCare and Spectrum Emergency Care.

  Aftermath

  The acquisitions made Laidlaw a major operator in intercity buses, paratransit and emergency medical services but also increased the complexity and financial risk of the group.

  Source

• 1996

  Sale of solid-waste operationsStrategy

  Background

  Laidlaw had built a substantial waste-management business in the United States and Canada.

  Action taken

  Laidlaw sold its solid-waste business to Allied Waste Industries and transferred Canadian operations to USA Waste Services.

  Aftermath

  The divestiture reduced the company’s exposure to waste management and supported a greater focus on transportation and emergency services.

  Source

• 1984

  Concentration on contracted transportationStrategy

  Background

  Laidlaw had expanded beyond trucking into school transportation, public transit and related service businesses.

  Action taken

  The company exited trucking and concentrated its resources on transportation contracting and other service operations.

  Aftermath

  The decision helped define Laidlaw as an acquisition-driven provider of outsourced passenger transportation rather than a conventional trucking company.

  Source

1. 1Laidlawen.wikipedia.org