Student Transportation of America, Inc. Completes Acquisition and Expands Via Contract Awards in Two States

WALL, NJ — Student Transportation of America, Inc. (STA), the nation’s second largest private education transportation services company, announced it has recently completed several new initiatives in its targeted growth program.

Denis J. Gallagher, Chairman and CEO, said the company has added two states in the U.S. to its growing operations and expanded organically in existing states through a combination of acquisitions, contract awards and new management service contracts.

STA completed the acquisition of Kemp Bus Service in Avon, New York effective April 1. The Kemp’s have owned the company since 1974 and operated the 60-bus fleet servicing various school districts in Monroe, Livingston and Steuben Counties.

“This is an area we have targeted for our rural and suburban growth opportunities and we are pleased the Kemp’s have been added to our family of companies. We look forward to expanding and strengthening our operations through the expertise and resources we can provide customers in the Upstate Region.” Gallagher said.  Former owner, John Kemp will continue to serve in the operations of this location and assist in new business opportunities.

STA has also secured a new 17 bus contract in York, Maine, its first in that state and has been awarded a new five year contract for 31 vehicles in Yough, PA which will compliment the company’s existing operations in Pennsylvania.

“The entry into Maine is a natural fit for us.  It’s similar to our current operations in surrounding New Hampshire and Vermont, which have been successful for both our customers and us.  We are also very pleased with the approval from the Yough School District in Western Pennsylvania.  Our operations in New England and Pennsylvania have produced a great customer base that supports our efforts and has allowed us to be real partners with them.  Our customers long term commitment to us in those regions, I’m sure, played an important factor in York and Yough’s decision to award us the contracts over other competitors”, Gallagher stated.

He added, “We have made a great effort to keep our operations very local and to stay close to the communities we serve.  This really is a local business, and our company is operated locally, by great people from the community.  Our customers know how hard we work to bring real solutions to transportation issues.”

The company also said it will announce shortly details of its new Municipal Leasing Program, which provides low cost school bus equipment financing in partnership with the largest financial leasing company in the U.S.  The program offers leasing alternatives for school districts that contract with STA Management Services Group, the fastest growing segment of the company’s business.  Gallagher said several new contracts are being negotiated with school districts where STA will provide management and logistic services to districts that operate their own fleets.  The company plans to aggressively market this new service in selected areas of the U.S. that have shown significant interest in the program.

STA now operates 2,600 vehicles locally in ten states throughout the United States. STA's senior management team has an average of more than 20 years of experience in the student and passenger transportation industry. The company was formed in 1997 by industry veteran, Denis Gallagher and management in partnership with GTCR Golder Rauner, Inc.

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