Laidlaw
Encyclopedia
Laidlaw, organized as Laidlaw International, Inc. (with corporate headquarters in Naperville, Illinois
), was a predecessor corporation of First Student (United States), a US subsidiary of the Scottish transport firm FirstGroup plc
. At the time of its acquisition by FirstGroup, Laidlaw was the largest provider of intercity bus services, contract public transit and paratransit
, and contract school bus service
in both the United States
and Canada
.
In February 2007, FirstGroup plc, a bus and rail transport operator in the United Kingdom with subsidiaries in North America, acquired Laidlaw International, Inc. for $35.25 per share or approximately US$3.6 billion including the assumption of US$0.8 billion of debt. FirstGroup plc completed the acquisition of Laidlaw International on October 1, 2007, and is currently rebranding Laidlaw services under the First umbrella. The deal combined North America’s two largest private school bus operators — Laidlaw Education Services and First Student Inc. — giving them a combined 40% of the school bus contractor market.
Laidlaw had grown primarily through acquisitions of other companies and contracting
of services formerly directly provided by government entities. It was the parent company of Laidlaw Transit (which was merged into First Transit
), Laidlaw Education Services (merged into First Student
), Greyhound Lines
and Greyhound Lines of Canada
, and a number of Gray Line Sightseeing
franchises in major North American cities. In acquiring Laidlaw, FirstGroup had announced that the Laidlaw name would not be kept, but that the Greyhound name would be maintained.
, Canada
.
Beginning in 1972, under the leadership of Michael DeGroote
, Laidlaw, Inc. began growing through acquisitions of other companies when it acquired a Canadian intercity and charter bus
company. In 1979, it acquired a Canadian contract school bus
business. In 1978 it entered the U.S. solid waste industry. In 1983, Laidlaw entered the U.S. school bus transportation sector with its acquisition of ARA Transportation, a major contract school bus provider which also owned a Wayne Corporation
bus dealership. In 1984, Laidlaw Inc. exited the trucking business, as the company began a consolidating smaller school bus contracting
companies in the U.S. and Canada. In 1988, Laidlaw, Inc. purchased a controlling interest in itself from Canadian Pacific Limited, parent of Canadian Pacific Railway
.
Instances of reverse privatization were rare, but did occur during Laidlaw's years of expansion. In Virginia
, several school districts canceled their school bus contracts with private operators and brought bus operations in-house. By the late 1980s, the only 3 remaining district school bus contracts were at Petersburg, Norfolk and Hopewell. Self-operation conversions for all three were urged by Virginia Department of Education officials as "cost-saving." The contracting companies unsuccessfully disputed the state's financial calculations and cost allocations for the reverse privatizations, which effectively ended all public school bus contracting
in Virginia by 1996. In 1991, after losing its major school bus contract in Norfolk, Virginia
to a governmental conversion to district-self-operation, Laidlaw sold the rest of its urban-suburban bus line, school bus contracting business serving independent schools and day camps, and related assets in the Norfolk area to Virginia Overland Transportation
. Virginia Overland Transportation was an operator of public service transportation and a much smaller industry consolidator in the state. The company had also lost their contract in Petersburg to self-operation in 1989, but was still operating at Hopewell. The latter converted in 1996, and Virginia Overland's parent company based in Richmond closed in 2004. The former Virginia Overland subsidiary operation in the Norfolk
area acquired from Laidlaw operates as Transquest and is now owned by Serco Group
. As of 2007, Transquest was continuing bus contract operations transporting students to many independent schools in South Hampton Roads
, including Norfolk Academy
.
In the 1990s, Laidlaw continued to acquire hundreds of smaller school bus
and public transit contractors in the U.S. and Canada. These also included major competitors, including Mayflower Contract Services in 1995, and National Bus Service in 1996. Around the same time, the company acquired American Medical Response
, a nation-wide U.S. ambulance service provider and CareLine, Inc., U.S. ambulance consolidator of smaller ambulance contractors.
In 1998, a watershed year, Laidlaw Inc. acquired Greyhound Lines
U.S. operations, Greyhound Canada, the DAVE Companies (specialists in paratransit
) and emergency management companies EmCare
and Spectrum Emergency Care.
Between 1997 and 1999, Laidlaw, Inc. exited the solid waste business after incurring heavy losses through its investments in Safety-Kleen
and Greyhound Lines. After almost 20 years of expansion, Laidlaw Inc. filed for protection under Chapter 11 of the U.S. Bankruptcy Code in June 2001.
Laidlaw International, Inc. listed its common shares on the New York Stock Exchange
(Ticker: LI), on February 10, 2004, and emerged from reorganization on June 23, 2003 as the successor to Laidlaw Inc. Canadian Pacific sold its remaining 17% interest in Laidlaw Inc. The company later sold American Medical Response, its EMS
contract operations to new owners.
Naperville, Illinois
Naperville is a city in DuPage and Will Counties in Illinois in the United States, voted the second best place to live in the United States by Money Magazine in 2006. As of the 2010 census, the city had a total population of 141,853. It is the fifth largest city in the state, behind Chicago,...
), was a predecessor corporation of First Student (United States), a US subsidiary of the Scottish transport firm FirstGroup plc
FirstGroup plc
FirstGroup plc is a public transport company, registered in Scotland at its headquarters in Aberdeen, operating in the United Kingdom, Ireland, Denmark, Sweden, Canada and the United States...
. At the time of its acquisition by FirstGroup, Laidlaw was the largest provider of intercity bus services, contract public transit and paratransit
Paratransit
Paratransit is an alternative mode of flexible passenger transportation that does not follow fixed routes or schedules. Typically mini-buses are used to provide paratransit service, but also share taxis and jitneys are important providers....
, and contract school bus service
School bus contractor
A school bus contractor is a private company or proprietorship that provides student transport services to a school district or non-public school. Of the 450,000 school buses operating in the United States, it is estimated that approximately 39% are operated by school bus contractors...
in both the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
In February 2007, FirstGroup plc, a bus and rail transport operator in the United Kingdom with subsidiaries in North America, acquired Laidlaw International, Inc. for $35.25 per share or approximately US$3.6 billion including the assumption of US$0.8 billion of debt. FirstGroup plc completed the acquisition of Laidlaw International on October 1, 2007, and is currently rebranding Laidlaw services under the First umbrella. The deal combined North America’s two largest private school bus operators — Laidlaw Education Services and First Student Inc. — giving them a combined 40% of the school bus contractor market.
Laidlaw had grown primarily through acquisitions of other companies and contracting
Independent contractor
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when...
of services formerly directly provided by government entities. It was the parent company of Laidlaw Transit (which was merged into First Transit
First Transit
First Transit, a division of FirstGroup America, is a United States-based subsidiary of the United Kingdom-based FirstGroup. It provides contract public transit and paratransit services, transit management services and transit consulting throughout North America...
), Laidlaw Education Services (merged into First Student
First Student
First Student, a division of FirstGroup America, is a brand used by the British transport company FirstGroup for student transport in the United States. According to the company's website, it is the largest provider of school bus services in the United States. The company operates out of 650...
), Greyhound Lines
Greyhound Lines
Greyhound Lines, Inc., based in Dallas, Texas, is an intercity common carrier of passengers by bus serving over 3,700 destinations in the United States, Canada and Mexico, operating under the well-known logo of a leaping greyhound. It was founded in Hibbing, Minnesota, USA, in 1914 and...
and Greyhound Lines of Canada
Greyhound Lines of Canada
Greyhound Canada is the prominent operator of inter-city coach services in Canada. Greyhound Canada is a subsidiary of Scotland's FirstGroup plc, linked with Dallas-based Greyhound Lines .-History:In 1929, Greyhound Canada was founded as Canadian Greyhound Coaches, Limited, operating in Alberta...
, and a number of Gray Line Sightseeing
Gray Line Worldwide
Gray Line Worldwide operates local sightseeing tours across the world using trolley coaches, double-deckers and standard single deck coaches. It also offers charter services, airport transfers and convention services....
franchises in major North American cities. In acquiring Laidlaw, FirstGroup had announced that the Laidlaw name would not be kept, but that the Greyhound name would be maintained.
History
Laidlaw began in 1924 when founder Robert Laidlaw created Laidlaw Transit, a trucking service company in OntarioOntario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
Beginning in 1972, under the leadership of Michael DeGroote
Michael DeGroote
Michael G. DeGroote, OC is a Canadian businessman and philanthropist from Hamilton, Ontario who currently resides in Bermuda. Aside from his business career, he is best known as a major private donor to local educational institutions such as McMaster University and Hillfield Strathallan...
, Laidlaw, Inc. began growing through acquisitions of other companies when it acquired a Canadian intercity and charter bus
Bus
A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...
company. In 1979, it acquired a Canadian contract school bus
School bus
A school bus is a type of bus designed and manufactured for student transport: carrying children and teenagers to and from school and school events...
business. In 1978 it entered the U.S. solid waste industry. In 1983, Laidlaw entered the U.S. school bus transportation sector with its acquisition of ARA Transportation, a major contract school bus provider which also owned a Wayne Corporation
Wayne Corporation
Wayne Corporation was a large manufacturer of buses and other vehicles branded with the trade name "Wayne." The corporate headquarters were in Richmond, Indiana, in Wayne County, Indiana, in the United States...
bus dealership. In 1984, Laidlaw Inc. exited the trucking business, as the company began a consolidating smaller school bus contracting
School bus contractor
A school bus contractor is a private company or proprietorship that provides student transport services to a school district or non-public school. Of the 450,000 school buses operating in the United States, it is estimated that approximately 39% are operated by school bus contractors...
companies in the U.S. and Canada. In 1988, Laidlaw, Inc. purchased a controlling interest in itself from Canadian Pacific Limited, parent of Canadian Pacific Railway
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
.
Instances of reverse privatization were rare, but did occur during Laidlaw's years of expansion. In Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
, several school districts canceled their school bus contracts with private operators and brought bus operations in-house. By the late 1980s, the only 3 remaining district school bus contracts were at Petersburg, Norfolk and Hopewell. Self-operation conversions for all three were urged by Virginia Department of Education officials as "cost-saving." The contracting companies unsuccessfully disputed the state's financial calculations and cost allocations for the reverse privatizations, which effectively ended all public school bus contracting
School bus contractor
A school bus contractor is a private company or proprietorship that provides student transport services to a school district or non-public school. Of the 450,000 school buses operating in the United States, it is estimated that approximately 39% are operated by school bus contractors...
in Virginia by 1996. In 1991, after losing its major school bus contract in Norfolk, Virginia
Norfolk, Virginia
Norfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....
to a governmental conversion to district-self-operation, Laidlaw sold the rest of its urban-suburban bus line, school bus contracting business serving independent schools and day camps, and related assets in the Norfolk area to Virginia Overland Transportation
Virginia Overland Transportation
Virginia Overland Transportation was an organization in Virginia in the United States which operated new and used bus dealerships and a number of intrastate urban-suburban bus lines for about 30 years in the late 20th and early 21st centuries....
. Virginia Overland Transportation was an operator of public service transportation and a much smaller industry consolidator in the state. The company had also lost their contract in Petersburg to self-operation in 1989, but was still operating at Hopewell. The latter converted in 1996, and Virginia Overland's parent company based in Richmond closed in 2004. The former Virginia Overland subsidiary operation in the Norfolk
Norfolk, Virginia
Norfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....
area acquired from Laidlaw operates as Transquest and is now owned by Serco Group
Serco Group
Serco Group plc is a government services company based in Hook, North Hampshire in the United Kingdom. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.-History:...
. As of 2007, Transquest was continuing bus contract operations transporting students to many independent schools in South Hampton Roads
South Hampton Roads
South Hampton Roads is a region located in the extreme southeastern portion of Virginia in the United States, and is part of the Virginia Beach-Norfolk-Newport News, VA-NC MSA with a population about 1.7 million....
, including Norfolk Academy
Norfolk Academy
Norfolk Academy is an independent co-educational day school in Norfolk, Virginia. Chartered in 1728, it is the oldest secondary school in Virginia and the eighth oldest in the United States...
.
In the 1990s, Laidlaw continued to acquire hundreds of smaller school bus
School bus
A school bus is a type of bus designed and manufactured for student transport: carrying children and teenagers to and from school and school events...
and public transit contractors in the U.S. and Canada. These also included major competitors, including Mayflower Contract Services in 1995, and National Bus Service in 1996. Around the same time, the company acquired American Medical Response
American Medical Response
American Medical Response, Inc. or is an American provider of emergency and non-emergency medical transportation, operating in 38 states and the District of Columbia. It employs around 17,000 personnel and has a fleet of 4,400 vehicles...
, a nation-wide U.S. ambulance service provider and CareLine, Inc., U.S. ambulance consolidator of smaller ambulance contractors.
In 1998, a watershed year, Laidlaw Inc. acquired Greyhound Lines
Greyhound Lines
Greyhound Lines, Inc., based in Dallas, Texas, is an intercity common carrier of passengers by bus serving over 3,700 destinations in the United States, Canada and Mexico, operating under the well-known logo of a leaping greyhound. It was founded in Hibbing, Minnesota, USA, in 1914 and...
U.S. operations, Greyhound Canada, the DAVE Companies (specialists in paratransit
Paratransit
Paratransit is an alternative mode of flexible passenger transportation that does not follow fixed routes or schedules. Typically mini-buses are used to provide paratransit service, but also share taxis and jitneys are important providers....
) and emergency management companies EmCare
EmCare
EmCare Holdings Inc., or EmCare, is a leading provider of physician services for emergency departments, inpatient physician services, inpatient radiology management programs and anesthesiology services...
and Spectrum Emergency Care.
Between 1997 and 1999, Laidlaw, Inc. exited the solid waste business after incurring heavy losses through its investments in Safety-Kleen
Safety-Kleen
Safety-Kleen Systems, Inc. is a privately held company that provides services such as collecting and recycling oil, providing industrial cleaning, and handling industrial waste...
and Greyhound Lines. After almost 20 years of expansion, Laidlaw Inc. filed for protection under Chapter 11 of the U.S. Bankruptcy Code in June 2001.
Laidlaw International, Inc. listed its common shares on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
(Ticker: LI), on February 10, 2004, and emerged from reorganization on June 23, 2003 as the successor to Laidlaw Inc. Canadian Pacific sold its remaining 17% interest in Laidlaw Inc. The company later sold American Medical Response, its EMS
Emergency medical services
Emergency medical services are a type of emergency service dedicated to providing out-of-hospital acute medical care and/or transport to definitive care, to patients with illnesses and injuries which the patient, or the medical practitioner, believes constitutes a medical emergency...
contract operations to new owners.
See also
- First Student (United States) - successor company
- First Student CanadaFirst Student CanadaFirst Student Canada, a subsidiary of the British company FirstGroup and a division of FirstGroup America, is a major contractor of school bus services and public transit systems. The company provides services in Canada comparable to those delivered by sister companies First Transit and First...
- successor company - FirstGroup
- Greyhound LinesGreyhound LinesGreyhound Lines, Inc., based in Dallas, Texas, is an intercity common carrier of passengers by bus serving over 3,700 destinations in the United States, Canada and Mexico, operating under the well-known logo of a leaping greyhound. It was founded in Hibbing, Minnesota, USA, in 1914 and...