Kohlberg & Company

Industry

Transportation

Company Profile

Coach USA was the second largest motor-coach industry participant in North America. The Company’s owner, Stagecoach plc., sought to divest its two largest divisions to downsize its North American exposure. The business had operations located in nine states in the Western and South Central regions of the U.S. Its service offering included: motorcoach charters; tours and sightseeing; commuter transportation; airport shuttles; and contract services for municipalities and corporations. The business, later renamed Coach America Group Inc., is now the largest tour and charter bus operator in North America and the third largest motorcoach industry participant on a national basis.

NewPoint’s Role

A Toronto-based group of high net worth individuals had financially backed a group of industry executives who, as part of a planned industry "roll-up" strategy, successfully negotiated the right to acquire the operations being sold. The financial backers concluded that the executives could not complete the contemplated transaction and engaged NewPoint as exclusive adviser to develop and execute a strategy to complete the transaction.

Transaction Snapshot

Within 45 days of being engaged, NewPoint had secured the U.S. buyout firm Kohlberg & Company to lead the acquisition, negotiated minority participation for the original financial backers, and raised senior financing for the transaction.