Stagecoach Group Plc , the international transport group operating buses, trains,trams, express coaches and ferries on Friday said it has agreed to buy nine Coach America Inc. businesses out of bankruptcy protection for $134 million to expand its long-distance Megabus network.
The businesses to be acquired include operations in Texas and California, which will provide depot infrastructure to enable Stagecoach to expand its megabus.com budget coach network more efficiently, more quickly and under its full control, whilst avoiding the need to pay a sub-contract profit margin in these locations.
The deal, which also requires antitrust approval, should be completed within three months, according to the U.K. company. At the option of the seller, a further 85 buses may be purchased for as much as $25.6 million in cash, it added.
The Dallas-based company — Coach America Inc. filed for Chapter 11 protection on Jan. 3, listing secured debt of about $389 million, including roughly $319 million owed to first-lien lenders, $30.5 million to second-lien holders and about $39.5 million owed to certain capital lessors and secured by liens over the company’s capital assets, according to court documents.
Stagecoach employs around 35,000 people, and operates bus, coach, rail, and tram services. Around 3 million customers use the Group’s transport services every day.