Transport group Stagecoach is set to acquire selected businesses and assets from Coach America, a bankrupt operator of bus and coach services in the US.
Stagecoach will buy businesses and related assets and liabilities for $134.2m (circa £85m), while a further 85 coaches may be sold at Coach America's option for $25.6m (c.£18m).
Coach America is currently operating under US law Chapter 11, which protects companies close to bankruptcy from their creditors, meaning the acquisition is subject to the approval of the US Bankruptcy Court of Delaware.
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Some $16.0m of the consideration has already been paid as a refundable deposit, with the balance being due on or around the completion of the transaction.
The businesses being acquired include contract, line-run, charter and sightseeing operations in Texas and California. The acquisition will provide depot infrastructure to enable Stagecoach to expand its megabus.com budget coach network more efficiently, more quickly and under its full control, while avoiding the need to pay a sub-contract profit margin in these locations. Megabus competes with the Greyhound bus network, among others, in the US; Greyhound is owned by Scottish firm FirstGroup.
The Stagecoach share price had risen 1.37% to 236.40p by 14:18.
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