Full speed ahead for Stagecoach following Coach America deal

VIRGIN Rail and megabus.com owner Stagecoach has further strengthened its position in the US transport market by acquiring businesses and assets from Coach America.

Nine businesses and related assets and liabilities have been acquired for US$134.2m.

The figure will be potentially adjusted based on the working capital of the acquired businesses and US$3m is being held in escrow pending the finalisation of any working capital adjustment.

In a related announcement on May 18, Stagecoach confirmed that the seller had the option to sell coaches to Stagecoach for a cash consideration of up to US$25.6m. To date, Stagecoach has acquired a further 12 coaches for US$2.9m.
Stagecoach’s transaction has been financed from available, committed bank facilities.

Dallas-based Coach America is one of the leading players in the US coach transport market.