(March 28, 2008) — The parent company of First Student is on track to save $100 million annually by integrating Laidlaw, according to a pre-close trading update.

FirstGroup America said it had made "excellent progress" with the integration and was focused on retaining current customers.

"Although we are only part way through the current school bus bidding season, we are pleased with the progress made in winning and retaining key business," the company said.

According to a FirstGroup spokeswoman, First Student has either renewed or added new contracts in LaCross, Wisc., Little Rock, Ark., West Point, Mass., and other cities this year.

The transfer from the former Laidlaw’s office in Naperville, Ill., to the FirstGroup America headquarters in Cincinnati was "for the most part complete," she added.

In February, FirstGroup, the Scottish parent company of FirstGroup America, agreed to acquire Laidlaw for an estimated $3.6 billion. Seven months later, the two companies finalized an agreement that had the companies divest a number of contracts serviced by approximately 800 school buses, or 3 percent of its total fleet, with potentially more transactions to come.

The expanded First Student operates 62,000 school buses, or about 13 percent of the total U.S. school bus fleet of 475,000, and two-fifths of the private school bus contractor market.