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Stagecoach Group sells Coach USA Texas taxi operations

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18/09/2003

Stagecoach Group is pleased to announce the sale of its Coach USA taxi operations in Texas to private investment group Texas Taxi Inc for a gross consideration of US$28million.

The Texas operations, which cover Houston, San Antonio and Austin, are the largest of Coach USA’s taxi businesses. The Texas business has around 350 employees and operates a total of 2100 cars.

The transaction is broadly in line with the expected book value of the net assets at completion and will not result in a material gain or loss on disposal in the consolidated accounts of Stagecoach Group plc. Sales proceeds will initially be used to reduce the Group’s outstanding debt.

The sale, which is part of Stagecoach Group’s strategy to refocus its US business on the North East and North Central regions, brings the gross consideration for disposals to date to around US$300million.

Brian Souter, Stagecoach Group Chief Executive, said: “We are now in the final phase of the delivery of our North American sales programme.

”We are making good progress in negotiations for the sale of our remaining taxi operations in Florida, San Diego, Minneapolis, Pittsburgh and Denver, and are continuing to pursue opportunities for the disposal of the Canadian region.”

Stagecoach Group is also pleased to announce that the sale of the South Central and West Regions of Coach USA to an affiliate of Kohlberg & Co. LLC, which was previously announced on 6 June 2003, has now been completed.

ENDS

Enquiries to:

Martin Griffiths, Group Finance Director, Stagecoach Group, 01738 642015
Steven Stewart, Corporate Communications, Stagecoach Group, 01738 442111 or 07764 774680
John Kiely, Smithfield Financial, 020 7360 4900

Note to Editors:

  • Stagecoach Group is a leading international transportation company, with operations in the UK, the USA, and New Zealand.
  • Stagecoach Group has previously announced the sale of the Transit, New England, and South East, regions, along with the disposal of taxi operations in Kansas City, Long Island and Indianapolis.

Texas Taxi Inc is a Texas-based private investment group.

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