Leading US Buyout Fund Completes Acquisition
Target Profile: Coach USA was the second largest motorcoach industry participant in North America. The company’s owner, Stagecoach plc.,
sought to divest its largest divisions to downsize its North American exposure. Kohlberg & Company acquired its two largest divisions operating in
17 regions located in nine states in the Western and South Central regions of the United States and named the resulting business CUSA Busways.
Services provided by CUSA include motorcoach charters, tours and sightseeing, commuter transportation, airport shuttles and contract services
for municipalities and corporations. CUSA 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 had negotiated the right to acquire multiple divisions of Coach USA. These financial backers had concluded that the executives
could not complete the contemplated transaction and engaged NewPoint to complete the business plan for the two divisions and to find
lead equity partners to effect the acquisition.
Transaction Snapshot: Within 45 days of being engaged, NewPoint had secured Kohlberg & Company as the buyout firm leading
the acquisition, negotiated minority participation for the seed investors and raised senior financing for the transaction.
