LONDON (dpa-AFX) - Stagecoach Group Plc (SGC.L) announced that certain of its subsidiaries have consented to acquire selected businesses and assets from Coach America, Inc.
Stagecoach has agreed to buy certain businesses and related assets and liabilities, for a cash consideration of $134.2 million and at the option of the sellers, up to 85 further coaches for a cash consideration of up to $25.6 million. Some $16 million 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 consideration payable will be potentially adjusted based on the working capital balances of the businesses to be acquired, Stagecoach noted.
Stagecoach Group chief executive, Brian Souter, commented, '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. 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.'
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