Money

Variant Equity Acquires Coach USA, Coach Canada

News Reports
Posted on April 24, 2019
Coach USA, Inc., is one of the largest transportation companies in North America, and maintains the highest safety compliance rating (Satisfactory) from the US Department of Transportation's Federal Motor Carrier Safety Administration. (Photo: Wikimedia user Secondarywaltz)

Coach USA, Inc., is one of the largest transportation companies in North America, and maintains the highest safety compliance rating (Satisfactory) from the US Department of Transportation's Federal Motor Carrier Safety Administration. (Photo: Wikimedia user Secondarywaltz)

LOS ANGELES — Variant Equity said April 16 it has completed the acquisition of Coach USA Administration, Inc. and its subsidiaries from Stagecoach Group plc in a transaction valued at about $271.4 million.

Headquartered in Paramus, N.J., Coach USA provides passenger transportation and mobility services including intercity bus, public transit, employee transportation, campus shuttle, and airport transportation services. The company operates through a number of marquee brands, including megabus.com, which provides intercity coach services. With over 4,500 employees and 2,200 buses, Coach USA has an extensive reach throughout the U.S. and Canada.

"With a history dating back to 1922, Coach USA has been a consistent leader in the passenger transportation industry," said Variant Equity Managing Partner Farhaad Wadia. "The combination of Coach USA's unwavering commitment to providing safe and reliable transportation and Variant's focus on providing corporate carve-outs with the technological, operational, and financial resources required to accelerate innovation and growth, will allow the company and its management team to unlock their full potential."

Coach USA will be led by CEO Linda Burtwistle, who previously served as the company's president and chief operating officer.

"Variant's transportation and logistics experience, combined with their focus on driving technology into businesses, will allow us to accelerate our vision for the company as the market leader in sustainable, technology-enabled, value-priced transportation across the United States and Canada," Burtwistle said.

Wadia said the Coach USA acquisition reflects Variant Equity's focus on middle-market corporate divestitures and marks the firm's third corporate carve-out in the last 18 months.

"We have remained committed to the corporate carve-out market and continue to show a high level of activity in the space. We believe our focus and experience has made us the preferred acquiror to our transaction partners and management teams," Wadia said.

Sidley Austin LLP and Alston & Bird LLP served as Variant Equity's legal counsel on the acquisition of Coach USA. Wells Fargo Bank, N.A. and MUFG Union Bank, N.A. served as joint lead arrangers for the financing of the transaction.

RBC Capital Markets acted as financial advisor, and Covington & Burling LLP acted as legal advisor to Stagecoach Group plc on the transaction.

Source: Coach USA press release

About Variant Equity

Founded in 2017, Variant Equity is a Los Angeles-based private equity firm that makes control investments in corporate divestiture transactions across a range of industries including transportation and logistics, technology, and business services. The firm's investment approach focuses on businesses it believes are best-suited to reach their full potential as stand-alone enterprises through the deployment of Variant's operations and technology resources. For more information please visit www.variantequity.com.

Related Topics: business deals, capital, finance, investment, mergers & acquisitions, motorcoach operators, motorcoaches, New Jersey operators

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