9 Jan 2006
Stagecoach New Zealand announces that it has entered into a conditional purchase agreement to acquire 74% of Mana Coach Services Limited. Stagecoach New Zealand already owns the balance of 26% of Mana Coach Services.
The agreement is conditional on Commerce Commission approval and completion of due diligence. An application for clearance has been filed with the Commerce Commission.
Timing of confirmation of the purchase will depend on the time taken by the Commerce Commission. Provisionally, settlement is scheduled for 3 April 2006.
Mana Coach Services is a long established family owned and managed business that operates both the Mana Coach Services and Newlands Buses. Established by Mr John Waddell, it is today run by his daughter, Ms Kerry Waddell, and Ms Jo Copland.
Mana Coach Services has approximately 100 coaches and major depots in Newlands, Porirua & Paraparaumu. Mana Coach Services employs approximately 180 staff.
Mana Coach Services is the largest bus and coach operator in north Wellington, Porirua and the Kapiti coast. It provides commuter and passenger bus services within these areas and connections to the Paraparaumu Tranz Metro rail line for Wellington city connections.
Mana Coach Services also has a substantial coach charter business in the greater Wellington area and elsewhere in the North Island.
Ross Martin, Executive Chairman of Stagecoach New Zealand said:
"Stagecoach is delighted to have conditionally acquired Mana Coach Services. Mana is a well run business that has a strong position in the fast growing north Wellington to Kapiti coast region. These are regions in which Stagecoach has very little presence. Mana also predominantly operates coaches, rather than Stagecoach's urban buses and trolley buses. This allows Mana to provide a wide range of charter services, for example to travelling sports, community and recreation groups, cruise line passengers and tour groups, that Stagecoach is not able to service from its fleet."
He also said:
"While the agreement is conditional, it will be business as usual for Mana and Newlands under its existing management and staff. If the agreement is confirmed, I expect this to continue. Mana and Newlands have strong brands, well situated depots and skilled management and employees."
Stagecoach New Zealand is a wholly owned subsidiary of Infratil Limited. The purchase will be funded through existing Infratil bank debt facilities.
In the year to 31 March Mana Coach Lines expect to have revenues of approximately $14 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $5.0 million.
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