MONTREAL - Groupe Orléans Express, the largest intercity bus operator in Quebec and second largest in Canada (after Greyhound Canada), has acquired a large chunk of the assets of its provincial competitor, Groupe Gaudreault.

Included in the acquisition were pieces of Groupe Gaudreaults intercity and transit business, chartered bus operation and various school bus contracts.

The transaction, which is subject to approval by various transportation regulatory bodies, will allow Groupe Orléans Express to essentially takeover most or all of seven Groupe Gaudreault operations, including Lanau Bus, Lanau Com, Lanau Mécano, Les Transports Fagnant, Sabem, Autobus Lachenaie and Autocars Murray Hill.

Terms of the deal were not revealed.

Upon completion of the transaction, Groupe Orléans Express will increase its fleet size from 105 intercity and transit buses to 375 vehicles, including 220 intercity and transit buses, and 155 school buses.

Its employment base jumps from 500 to 800.

"Combined with the existing Groupe Orléans Express operations, this acquisition not only consolidates our position in Quebec and in Canada, it also allows us to offer new services to our clientele, particularly in the fields of transit and school transportation, and also a wider service territory that reflects the company's diversification plan," said Groupe Orléans Express President and CEO Sylvain Langis.

Most of Groupe Orleans Express activities are in Quebec and the Maritimes. The company is a subsidiary of Keolis SA (75 percent ownership), a leading public transport operator in France. Langis owns the remaining 25 percent.

"We're delighted that a world-class company such as Groupe Orléans Express Inc. has decided to acquire some of our assets," said Groupe Gaudreault's two owners/shareholders, Manon and Martin Gaudreault, in a statement.

"Service users will continue to enjoy high quality transportation for their commute and our employees will keep their jobs; those were two priorities for us."

Groupe Gaudreault, which has its headquarters in Repentigny, Quebec, will continue operations at four locations: Joliette, Saint-Jacques, Trois-Rivières and Anjou.

The company is shrinking from 750 employees to 450, and its fleet is going from 100 intercity and transit buses to 10, from 500 school buses to 310, and from 13 luxury coaches to 2.

Groupe Gaudreault is a family-owned business that has been around since 1951. Manon and Martin Gaudreault are grandchildren of the founder, the late Roméo Gaudreault.