Meet Carey Paster

STN Talks With the President of What Could Be the Largest School Transportation Company in the U.S.

In February, FirstGroup plc, the Aberdeen, Scotland-based parent company of First Student, bid to purchase Laidlaw International for an estimated $3.6 billion US. If the acquisition is finalized, the enlarged company would own 63,000 buses — around 40 percent of the contracted transportation market and around 13 percent of the total pupil transportation market — making it the largest pupil transportation company in the United States.

However, at the time of print, the purchase was still pending U.S. Department of Justice approval. Representatives from neither Laidlaw nor First Student would speculate on when they might win the regulatory approval to close the deal. While shareholders from both companies have approved the acquisition, closing the deal depends on federal and Canadian antitrust approval. The antitrust division of the Department of Justice had requested additional information from both companies, effectively extending the waiting period for completion of the deal. In Canada, a 14-day statutory waiting period had expired. Shortly before the shareholder vote in April,

School Transportation News interviewed the president of First Student, and potential head of the largest bus contractor in the country, Carey Paster.

School Transportation News: How is the acquisition going to play out in communities where there are both First Student and Laidlaw operations?

Carey Paster: With any enlarged company following an acquisition, there is an integration process, and we expect there will be a consolidation of facilities.

STN: Do you expect to employ all the Laidlaw bus drivers?

CP: Yes, every single one. Drivers, monitors, managers and technicians. We fully anticipate that we will be moving every front line employee right into First Student. The two teams will be working very closely together, making us a much stronger company.

STN: After the deal is approved, will the Laidlaw Educational Services name go away?

CP: Correct.

STN: We recently reported that you would be installing Theft-Mate, an anti-intrusion alarm on your buses. What can you tell us about this?

CP: We’re excited about this technology, and we believe our customers will be, too, when they see its value and realize it’s another solid layer of safety and security for the vehicle. For us, it’s another important step in our never-ending pursuit to provide our customers with the safest and most secure school buses on the roads today. We plan to outfit our entire fleet with the new intrusion alarm; and by Sept. 30, we will have alarms on all 20,000 First Student buses, and then, following the acquisition, we’ll be moving on to the Laidlaw buses.

STN: The International Brotherhood of Teamsters has voiced its concern about the proposed acquisition. Recently, Sen. Richard Durbin and Illinois state Rep. Phil Hare appeared at a Laidlaw protest. What can you tell us about First Student’s labor relations?

CP: We have excellent relations with our union locations and our union personnel. When it comes to union representation, we believe it’s the employee’s right to choose and vote by secret ballot. If questions are asked, we will answer them factually. Our people are not coercing or threatening, and we’re not there to tell our employees which way to go. What we believe is just provide factual information, and then, let our employees to do the rest, vote and decide for themselves what’s best for them and their family.

STN: Do you anticipate a greater roll within the National School Transportation Association?

CP: As a company, yes. Personally, right now all my efforts are focused on running First Student and making sure that this acquisition is complete and that I welcome all the new employees from Laidlaw.

STN: What would you say to the industry as a whole about the acquisition?

CP: The industry as a whole is 475,000 to 480,000 school buses in the United States and many, many more in Canada. The combined entities will operate 63,000 school buses. So, there are plenty of other opportunities out there for other contractors to do business in North America, and we welcome their competition.

STN: Do you anticipate that First Student will continue acquiring other smaller contractors?

CP: Sure. Absolutely. Our business plan has always been the acquisition of other companies, great family owned businesses. I’ve had the pleasure of being involved with many of them and getting to know some wonderful industry people. Even though this is a rather large acquisition, growing and acquiring other companies is still on our radar.

STN: Do you anticipate any corporate culture clashes?

CP: Any time you bring two companies together there will be differences in culture, but when you look at the talent and leadership on both sides, when you have that kind of intelligence and let loose and people work together for the good of the stakeholders, then we will come out with a very good integrated culture.

STN: So. once the ‘yes’ votes are in, you’re going to start on this immediately?

CP: Yes.