Arab Today, arab today us stagecoach back via £101m deal
Last Updated : GMT 18:01:58
Arab Today, arab today
Arab Today, arab today

US Stagecoach back via £101m deal

Arab Today, arab today

Arab Today, arab today US Stagecoach back via £101m deal

Washington - Arabstoday

Stagecoach chief executive Sir Brian Souter has revisited one of the Perth-based transport group\'s most humbling investments with the acquisition of large parts of his former Coach USA operation in North America. Stagecoach is to pay up to £101 million for nine businesses belonging to Coach America, seven of which it previously owned. Sir Brian said: \"Our North American division is the fastest growing part of the group and this transaction will allow us to acquire selected businesses and vehicles at attractive prices in markets and regions we know well. \"These businesses will benefit from both our management expertise and ability to invest for growth.\" The bus and train group was badly hit when its 1999 acquisition of Coach USA for £1.2 billion turned sour. The deal left Stagecoach taking millions of pounds in losses and cost two chief executives their posts. The group eventually offloaded the bulk of the business. This included the sale of its south central and west region units to private equity house Kohlberg in 2003 for £94m.This formed the basis for Coach America. Having rebuilt its presence in the US through the expansion of its Megabus budget coach network, Stagecoach has agreed to pay $134.2m (£85m) in cash to buy back much of the business it sold to Kohlberg. This will add 800 vehicles to the 1900 Stagecoach already runs in North America. Coach USA has the option to sell Stagecoach as many as another 85 coaches for up to $25.6m. A Stagecoach spokesman said it is a \"quite different business\" to that sold in 2003 because at that point Stagecoach had to bundle together a package of both underperforming and strong units. Coach America has been operating under Chapter 11 bankruptcy protection since January 2012. This has allowed Stagecoach to cherry-pick the businesses it wants, which together account for around a third of Coach America\'s turnover. The businesses being acquired include contract, line-run, charter and sightseeing operations. The units in San Antonio and Dallas, Texas and Sacramento and Anaheim in California will be integrated into Stagecoach\'s rapidly expanding Megabus network. The other businesses in Atlanta, Georgia; Cleveland, Ohio; Gillette, Wyoming; Elko, Nevada; Hanover, Maryland; and Portland, Oregon will continue to operate under local brands. The Cleveland and Portland businesses were not previously owned by Stagecoach. Sir Brian said: \"We see significant potential to roll-out megabus.com\'s successful package of low fares and high quality service to new locations in the United States. \"The acquisitions in Texas and California in particular will give us an extended geographic footprint to accelerate our growth strategy for the brand, which already covers around 80 key locations in North America.\" When Stagecoach initially launched Megabus in the US in 2006 it set up an operation in California but soon decided to focus on the north east of the country. David Pitura, analyst at JP Morgan Cazenove, said: \"Coach America currently owns a significant number of the businesses that Stagecoach (through Coach USA) used to own – and some that it did not. Given the previous ownership, Stagecoach should have a good working knowledge of these businesses.\" Stagecoach has handed over a $16m refundable deposit and will pay with existing bank facilities. A US bankruptcy court will decide next week whether to approve the deal. Last year Stagecoach took $529.4m in revenue from North America, generating operating profit of $45.4m. The business being added made $164.4m in revenues with operating profit of $13.3m. Sir Brian will be banking on a very different experience to a decade ago when Coach USA struggled in the face of an economic downturn in the US, exacerbated by the impact on the 2001 World Trade Centre attacks on demand for transport services. That foray into North America cost chief executives Mike Kinski, followed by Keith Cochrane, their jobs. Mr Cochrane is now chief executive of Glasgow-based engineering company Weir Group. Meanwhile Sir Brian, Stagecoach\'s co-founder, returned to frontline duties and remains Stagecoach\'s chief executive.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us stagecoach back via £101m deal Arab Today, arab today us stagecoach back via £101m deal

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday