Variant Equity Acquires Coach USA and Coach Canada

Variant Equity announced April 16 that it has completed the acquisition of Coach USA Administration, Inc. and its subsidiaries from Stagecoach Group plc in a transaction valued at approximately $271.4 million.

Headquartered in Paramus, New Jersey, Coach USA is a leading provider of passenger transportation and mobility services including intercity bus, public transit, employee transportation, campus shuttle and airport transportation services. Coach USA 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 United States and Canada.

“With a history that dates back to 1922, Coach USA has been a consistent leader in the passenger transportation industry,” Variant Equity Managing Partner Farhaad Wadia said. “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 Coach USA and its management team to unlock their full potential.”

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

“We are proud of what we have been able to accomplish under Stagecoach’s ownership and are looking forward to building upon those successes in the future,” Burtwistle said. “We are extremely excited to partner with Variant. Their transportation and logistics experience, combined with their focus on driving technology into businesses will allow us to accelerate our vision for Coach USA as the market leader in sustainable, technology-enabled, value-priced transportation across the United States and Canada.”

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 acquirer to our transaction partners and management teams,” he 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.

This release originally appeared on the Coach USA website. You can view it here.