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Variant Equity Completes Acquisition of Coach USA And Coach Canada
Thursday 18 April 2019

18 April 2019 - US-based investment firm Variant Equity has completed the acquisition of US-based passenger transportation and mobility services provider Coach USA Administration, Inc. and its subsidiaries from UK-based transport group Stagecoach Group plc (LSE: SGC) Stagecoach Group plc in a transaction valued at approximately USD 271.4m, the firm said.

Headquartered in Paramus, New Jersey, Coach USA is a provider of 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, which provides intercity coach services.

With over 4,500 employees and 2,200 buses, Coach USA has extensive reach throughout the United States and Canada.

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

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.

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.

Sidley Austin LLP and Alston and 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 and Burling LLP acted as legal advisor to Stagecoach Group plc on the transaction.
Date Published: 18/04/2019
Target: Coach,  USA Administration
Country: USA
Deal Size: 271.4m (USD)
Sector: Road Transport/Freight Transport
Type: LBO
Financing: Cash
Status: Closed
Vendor: Stagecoach Group
Buyer: Variant Equity
Buyer Advisor: Sidley Austin , Alston and Bird