News emerges following the division’s recent financial strugglesAfter the news emerged in December that Stagecoach was in talks to offload its North America Division (CBW1372), the group has now agreed to sell the business to Variant Equity Advisors, LLC, for an estimated enterprise valuation of $271.4m.
The deal is subject to certain conditions, including the approval of the Surface Transportation Board.
The cash generated from the sale – which is expected to be completed by the end of the current financial year to 27 April 2019 – will be used to reduce the group’s debt.
Together, the group’s Coach USA and Coach Canada operations form one of the largest passenger transport companies in North America, incorporating more than 29 local carriers, with more than 4,500 employees and approximately 2,200 coaches and buses.
The North American arm also provides megabus.com inter-city coach services,
commuter services, airport transport, sightseeing tours, charters and contract services across the continent.
Martin Griffiths, Stagecoach Chief Executive, commented: “During our two decades in the North American transport market, our success included reinvigorating the inter-city coach sector and delivering growth with our innovative megabus.com brand.
“We have a great team of people who have ensured we have played a leading role in the development of public transport in the United States and Canada.
“The sale of our North American operations will allow management to focus more closely on the significant opportunities for growth in the UK.
“We have strong bus and rail operations in the UK where public transport has good prospects as the clear solution to the challenges of increasing road congestion and poor air quality.”
Linda Burtwistle, President and COO of Coach USA North America, added: “Coach USA has been hugely successful in delivering safe, high quality, affordable and greener travel for people across North America.
“I believe we have the best team in the industry who will continue to deliver the best travel experience possible to our passengers every single day.
“We are excited about this tremendous opportunity and look forward to delivering our strategy alongside Variant.”