Variant Equity I, LP, and Project Kenwood Acquistion, LLC-Acquisition of Control-Coach USA Administration, Inc., and Coach USA, Inc., 5802-5804 [2019-03115]
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Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / Notices
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–03037 Filed 2–21–19; 8:45 am]
BILLING CODE 8011–01–P
16 17
CFR 200.30–3(a)(12).
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Notice of Information Collection Under
OMB Emergency Review: Three
Information Collections Related to the
United States Munitions List,
Categories I, II and III; Correction
Notice of request for emergency
OMB approval and public comment;
correction.
The Department of State
published a Federal Register Notice on
February 12, 2019, notifying the public
of the Emergency processing and
approval of this collection by April 1,
2019. The Notice using Docket Number:
DOS–2018–0063 contained an incorrect
date when all comments must be
received. This document corrects the
date to March 14, 2019.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents
to Andrea Battista who may be reached
on 202–663–3136 or at battistaal@
state.gov.
SUMMARY:
Correction
In the Federal Register, published on
February 12, 2019, in FR Doc. 2019–
01983, on page 3528, in the first
column, the correct date when all
comments must be received is March
14, 2019.
Anthony M. Dearth
Chief of Staff, Directorate of Defense Trade
Controls, Department of State.
[FR Doc. 2019–03091 Filed 2–21–19; 8:45 am]
BILLING CODE 4710–25–P
SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21084]
Variant Equity I, LP, and Project
Kenwood Acquistion, LLC—
Acquisition of Control—Coach USA
Administration, Inc., and Coach USA,
Inc.
Surface Transportation Board.
Notice tentatively approving
and authorizing finance transaction.
AGENCY:
ACTION:
On December 20, 2018,
Variant Equity I, LP (Variant), and
Project Kenwood Acquisition, LLC
(collectively, Applicants), both
noncarriers, jointly filed an application
to acquire from SCUSI Limited 100% of
the stock in Coach USA Administration,
Inc., a noncarrier that owns 100% of
SUMMARY:
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Coach USA, Inc., another noncarrier,
that controls 29 motor passenger carriers
that hold federally-issued interstate
operating authority. The Board is
tentatively approving and authorizing
the transaction,1 and, if no opposing
comments are timely filed, this notice
will be the final Board action. Persons
wishing to oppose the application must
follow the rules.
DATES: Comments must be filed by April
8, 2019. Applicants may file a reply by
April 23, 2019. If no opposing
comments are filed by April 8, 2019,
this notice shall be effective on April 9,
2019.
ADDRESSES: Send an original and 10
copies of any comments referring to
Docket No. MCF 21084 to: Surface
Transportation Board, 395 E Street SW,
Washington, DC 20423–0001. In
addition, send one copy of comments to
Applicants’ Representative: Matthew J.
Warren, Sidley Austin LLP, 1501 K
Street NW, Washington DC 20005.
FOR FURTHER INFORMATION CONTACT:
Matthew Bornstein at (202) 245–0385.
Assistance for the hearing impaired
available through the Federal
Information Relay Service (FIRS) at 1–
800–877–8339.
SUPPLEMENTARY INFORMATION:
Applicants explain that Variant is a
private equity firm organized under the
laws of the State of Delaware. (Appl. 2.)
It controls 100% of the equity and vote
of Project Kenwood Acquisition, LLC,
which is also organized under the laws
of the State of Delaware. Applicants
assert that neither Variant nor any entity
currently under its control holds motor
carrier authority or a U.S. Department of
Transportation number or safety rating.2
(Id.)
Applicants state that Coach USA, Inc.,
which is a Delaware corporation,
controls 29 motor passenger carriers that
hold federally issued interstate
operating authority 3 and operate, in
total, approximately 2,213 buses.4
1 Due to the partial shutdown of the Federal
government from December 22, 2018, through
January 25, 2019, the Board was not able to act
within the period set forth in 49 U.S.C. 14303(c).
On January 28, 2019, Applicants filed a motion
seeking expedited review of the application and
publication of a notice in the Federal Register. On
January 30, 2019, Stagecoach Group plc filed a
reply in support of Applicants’ motion to expedite.
2 Applicants state that Variant controls multiple
assets, including Curb Mobility, which provides a
comprehensive mobility platform that serves taxi
and other for-hire ride operators, regulators, service
providers, and riders. (Appl. 2.)
3 A 30th Coach USA-owned carrier, Community
Transportation, Inc., operates only on intrastate
routes in New Jersey. (See id. at 6.)
4 This figure is derived from Exhibit 1 of the
verified application, which lists, among other
things, the approximate number of buses operated
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Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / Notices
Coach USA, Inc., is a wholly owned
subsidiary of Coach USA
Administration, Inc., a Nevada
corporation. (Id. at 3–4.) All the equity
interests in Coach USA Administration,
Inc., are held by SCUSI Limited, a
public limited holding company
organized under the laws of England
and Wales. Stagecoach Group plc is the
ultimate parent of SCUSI Limited and is
organized under the laws of Scotland.
(Id. at 3.) 5
The 29 interstate motor carriers are
described in Exhibit 1 of the application
as follows: 6
• Airport Supersaver Inc., which
primarily operates in Illinois;
• All West Coachlines, Inc., which
primarily operates in California and
Nevada;
• American Coach Lines of Atlanta,
Inc., which primarily operates in
Georgia, Florida, Alabama, and South
Carolina;
• Butler Motor Transit, Inc., which
primarily operates in Pennsylvania,
New Jersey, New York, and Michigan;
• Central Cab Company which
primarily operates in Pennsylvania,
Ohio, and West Virginia;
• Chenango Valley Bus Lines., Inc.,
which primarily operates in New Jersey,
New York, and Pennsylvania;
• Community Coach, Inc., which
primarily operates in New Jersey, New
York, Ohio, and Pennsylvania;
• Community Transit Lines, Inc.,
which primarily operates in New Jersey;
• Dillon’s Bus Service, Inc., which
primarily operates in Maryland,
Virginia, and the District of Columbia;
• Elko, Inc., which primarily operates
in Nevada;
• Hudson Transit Lines, Inc., which
primarily operates in New Jersey, New
York, and Pennsylvania;
• Independent Bus Company, Inc.,
which primarily operates in New Jersey;
• Kerrville Bus Company, Inc., which
primarily operates in Texas, Arkansas,
and Louisiana;
• Lakefront Lines, Inc., which
primarily operates in Illinois, Indiana,
Ohio, Pennsylvania, Michigan,
Tennessee, and New York;
• Megabus Northeast, LLC, which
primarily operates in Connecticut, the
District of Columbia, Georgia,
Massachusetts, Maryland, North
by each Coach USA carrier with active federal
operating authority.
5 The Board has approved several acquisitions by
Stagecoach Group plc and Coach USA, Inc., the
most recent of which was in Stagecoach Group
plc—Acquisition of Control of Assets—American
Coach Lines of Atlanta, Inc., MCF 21045 (STB
served Aug. 15, 2012).
6 Additional information about the motor carriers,
including USDOT numbers and motor carrier
numbers, can be found in the application.
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Carolina, New Jersey, New York, Ohio,
Pennsylvania, Rhode Island, Virginia,
West Virginia, and Maine;
• Megabus Southeast, LLC, which
primarily operates in Alabama, the
District of Columbia, Florida, Georgia,
Kentucky, Louisiana, North Carolina,
Tennessee, and Virginia;
• Megabus Southwest, LLC, which
primarily operates in Arkansas, Texas,
Louisiana, Tennessee, and Missouri;
• Megabus West, LLC, which
primarily operates in California and
Nevada;
• Olympia Trails Bus Company, Inc.,
which primarily operates in New Jersey
and New York;
• Orange, Newark, Elizabeth Bus,
Inc., which primarily operates in New
Jersey;
• Pacific Coast Sightseeing Tours &
Charters, Inc., which primarily operates
in California and Nevada;
• Powder River Transportation
Services, Inc., which primarily operates
in Wyoming and Montana;
• Rockland Coaches, Inc., which
primarily operates in New York and
New Jersey;
• Sam Van Galder, Inc., which
primarily operates in Wisconsin,
Illinois, and Minnesota;
• Suburban Trails, Inc., which
primarily operates in New Jersey and
New York;
• Transportation Management
Services, Inc. (d/b/a Lenzner Coach
Lines), which primarily operates in
Pennsylvania;
• Trentway-Wagar, Inc., which
primarily operates in New York and
Canada;
• Tri-State Coach Lines Inc., is not
currently operating; and
• Wisconsin Coach Lines, Inc., which
primarily operates in Wisconsin and
Illinois.
Applicants state that the purpose of
the transaction is to transfer the ultimate
ownership of the 29 carriers from
Stagecoach Group plc and SCUSI
Limited to Variant. Variant seeks to
acquire the carriers as an investment
and plans to manage the assets with the
goal of continuing to provide safe and
reliable motor passenger transportation,
while at the same time improving longterm value. (Appl. 1.)
Under 49 U.S.C. 14303(b), the Board
must approve and authorize a
transaction subject to section 14303 that
it finds consistent with the public
interest, taking into consideration at
least: (1) The effect of the proposed
transaction on the adequacy of
transportation to the public, (2) the total
fixed charges that result, and (3) the
interest of affected carrier employees.
Applicants have submitted information
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5803
required by 49 CFR 1182.2, including
information to demonstrate that the
proposed transaction is consistent with
the public interest under 49 U.S.C.
14303(b), see 49 CFR 1182.2(a)(7), and
a statement that the aggregate gross
operating revenues of the involved
carriers exceeded $2 million during the
preceding 12-month period. See 49
U.S.C. 14303(g).7
Applicants assert that the proposed
transaction would have a positive effect
on the adequacy of transportation
services for the public. They state that,
at the current time, Variant has no
intention of materially altering the
nature, extent, or frequency of the
service provided by the 29 motor
carriers. (Appl. 12.) Applicants state
that the carriers would continue to
operate as they have been with their
existing names and trade names, but
under new ultimate ownership.
Applicants further state that Variant
would use its management experience
to enhance the carriers’ overall financial
viability while providing safe and
quality service to customers. (Id.)
Applicants argue that the proposed
transaction would have no negative
impact on competition because Variant
is not a carrier and does not own or
control any carriers. (Id.) They assert
that there would be continued
competition in each of the categories of
service provided by the carriers because
they would continue to face actual and
potential competition from numerous
modes of transportation, including
competing bus services, automobiles,
and more. (Id. at 12–13.)
Applicants state that the proposed
transaction would increase fixed
charges, in the form of interest expense,
because funds would be borrowed to
assist in financing the transaction. (Id. at
13.) They claim, however, that such an
increase would not affect the provision
of transportation services to the public.
Applicants also cite to Sureride Charter,
Inc.—Acquisition of Control—
McClintock Enterprises, Inc., MCF
21077 (STB served Nov. 2, 2017), where
the Board approved a transaction
envisioning debt financing and the
possibility of an increase in interest
expenses.
Regarding the interests of employees,
Applicants claim that there would be no
material effect on employee or labor
conditions because the proposed
transaction does not envision any
immediate change in the day-to-day
operations of the carriers that could
7 Parties must certify that the transaction involves
carriers whose aggregate gross operating revenues
exceed $2 million, as required under 49 CFR
1182.2(a)(5).
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Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / Notices
negatively impact employees. (Appl.
14.)
The Board finds that the acquisition
proposed in the application is
consistent with the public interest and
should be tentatively approved and
authorized. If any opposing comments
are timely filed, these findings will be
deemed vacated, and, unless a final
decision can be made on the record as
developed, a procedural schedule will
be adopted to reconsider the
application. See 49 CFR 1182.6(c). If no
opposing comments are filed by the
expiration of the comment period, this
notice will take effect automatically and
will be the final Board action.
This action is categorically excluded
from environmental review under 49
CFR 1105.6(c).
Board decisions and notices are
available at www.stb.gov.
It is ordered:
1. The proposed transaction is
approved and authorized, subject to the
filing of opposing comments.
2. If opposing comments are timely
filed, the findings made in this notice
will be deemed vacated.
3. This notice will be effective April
9, 2019, unless opposing comments are
filed by April 8, 2019.
4. A copy of this notice will be served
on: (1) The U.S. Department of
Transportation, Federal Motor Carrier
Safety Administration, 1200 New Jersey
Avenue SE, Washington, DC 20590; (2)
the U.S. Department of Justice, Antitrust
Division, 10th Street & Pennsylvania
Avenue NW, Washington, DC 20530;
and (3) the U.S. Department of
Transportation, Office of the General
Counsel, 1200 New Jersey Avenue SE,
Washington, DC 20590.
Decided: February 15, 2019.
By the Board, Board Members Begeman,
Fuchs, and Oberman.
Jeffrey Herzig,
Clearance Clerk.
control of Dover and Delaware River
Railroad, LLC (DDRR), when DDRR
becomes a Class III rail carrier in a
related transaction involving DDRR’s
lease and operation of 27.2 miles of rail
lines owned by Norfolk Southern
Railway Company (NSR) and operation
of 80.7 miles of rail lines pursuant to a
trackage rights agreement among DDRR,
New Jersey Transit Corporation, and
NSR.1 All of the affected lines are
located in the State of New Jersey. The
lines over which DDRR will operate
connect with lines operated by Dover
and Rockaway River Railroad, LCC
(Rockaway), another Class III carrier that
CAD controls.2 Because all of the
carriers involved are Class III carriers,
this continuance-in-control exemption
is not subject to labor protective
conditions.
This exemption will be effective
on February 25, 2019. Petitions to stay
must be filed by February 20, 2019.
Petitions to reopen must be filed by
March 7, 2019.
DATES:
Send an original and 10
copies of all pleadings, referring to
Docket No. FD 36259, to: Surface
Transportation Board, 395 E Street SW,
Washington, DC 20423–0001. In
addition, one copy of each pleading
must be served on Eric M. Hocky, Clark
Hill PLC, One Commerce Square, 2005
Market Street, Suite 1000, Philadelphia,
PA 19103.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Sarah Fancher, (202) 245–0355. Federal
Information Relay Service (FIRS) for the
hearing impaired: (800) 877–8339.
SUPPLEMENTARY INFORMATION:
Additional information is contained in
the Board’s decision served on February
15, 2019, which is available at
www.stb.gov.
SURFACE TRANSPORTATION BOARD
Decided: February 14, 2019.
By the Board, Board Members Begeman,
Fuchs, and Oberman.
Tammy Lowery,
Clearance Clerk.
[Docket No. FD 36259]
[FR Doc. 2019–03012 Filed 2–21–19; 8:45 am]
[FR Doc. 2019–03115 Filed 2–21–19; 8:45 am]
BILLING CODE 4915–01–P
BILLING CODE 4915–01–P
Kean Burenga and Chesapeake and
Delaware, LLC—Continuance in
Control Exemption—Dover and
Delaware River Railroad, LLC
Surface Transportation Board.
ACTION: Notice of exemption.
AGENCY:
The Board is granting an
exemption for Kean Burenga (Burenga)
and Chesapeake and Delaware, LLC
(CAD), both noncarriers, to continue in
SUMMARY:
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16:52 Feb 21, 2019
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1 See Dover & Del. River R.R.—Lease with
Interchange Commitment & Trackage Rights
Exemption—Norfolk S. R.R., FD 36258 (STB served
Dec. 20, 2018).
2 Burenga previously sought authority to continue
in control of Rockaway once Rockaway became a
Class III rail carrier. (See Pet. 2 (citing Burenga—
Continuance in Control Exemption—Dover &
Rockaway River R.R., FD 36125, slip op. at 1 (STB
served June 16, 2017)).) The Board found it
unnecessary to resolve the issue of Burenga’s
control in that proceeding.
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SURFACE TRANSPORTATION BOARD
[Docket No. AB 312 (Sub-No. 4X); Docket
No. AB 1000 (Sub-No. 4X)]
South Carolina Central Railroad
Company, LLC—Abandonment
Exemption—in Terrell County, GA;
Georgia Southwestern Railroad, Inc.—
Discontinuance Exemption—in Terrell
County, GA
South Carolina Central Railroad
Company, LLC (SCRF), and Georgia
Southwestern Railroad, Inc. (GSWR)
(collectively, Applicants), have jointly
filed a verified notice of exemption
under 49 CFR pt. 1152 subpart F—
Exempt Abandonments and
Discontinuances of Service for SCRF to
abandon, and for GSWR to discontinue
service over, approximately 1,350 feet of
rail line between milepost 72.88 and
milepost 72.63 in the Town of Sasser,
Terrell County, GA (the Line). The Line
traverses U.S. Postal Service Zip Code
39885.
Applicants have certified that: (1) No
local or overhead traffic has moved over
the Line for at least two years; (2)
because the Line is not a ‘‘through line,’’
there is no overhead traffic on the Line;
(3) no formal complaint filed by a user
of rail service on the Line (or by a state
or local government entity acting on
behalf of such user) regarding cessation
of service over the Line either is
pending with the Surface
Transportation Board (Board) or with
any U.S. District Court or has been
decided in favor of complainant within
the two-year period; and (4) the
requirements at 49 CFR 1105.7(c)
(environmental report), 49 CFR 1105.12
(newspaper publication), and 49 CFR
1152.50(d)(1) (notice to governmental
agencies) have been met.
As a condition to these exemptions,
any employee adversely affected by the
abandonment and discontinuance of
service shall be protected under Oregon
Short Line Railroad—Abandonment
Portion Goshen Branch Between Firth &
Ammon, in Bingham & Bonneville
Counties, Idaho, 360 I.C.C. 91 (1979). To
address whether this condition
adequately protects affected employees,
a petition for partial revocation under
49 U.S.C. 10502(d) must be filed.
Provided no formal expression of
intent to file an offer of financial
assistance (OFA) 1 has been received,
1 The Board modified its OFA procedures
effective July 29, 2017. Among other things, the
OFA process now requires potential offerors, in
their formal expression of intent, to make a
preliminary financial responsibility showing based
on a calculation using information contained in the
carrier’s filing and publicly available information.
See Offers of Financial Assistance, EP 729 (STB
served June 29, 2017); 82 FR 30,997 (July 5, 2017).
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]]>Agencies
[Federal Register Volume 84, Number 36 (Friday, February 22, 2019)]
[Notices]
[Pages 5802-5804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03115]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21084]
Variant Equity I, LP, and Project Kenwood Acquistion, LLC--
Acquisition of Control--Coach USA Administration, Inc., and Coach USA,
Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving and authorizing finance
transaction.
-----------------------------------------------------------------------
SUMMARY: On December 20, 2018, Variant Equity I, LP (Variant), and
Project Kenwood Acquisition, LLC (collectively, Applicants), both
noncarriers, jointly filed an application to acquire from SCUSI Limited
100% of the stock in Coach USA Administration, Inc., a noncarrier that
owns 100% of Coach USA, Inc., another noncarrier, that controls 29
motor passenger carriers that hold federally-issued interstate
operating authority. The Board is tentatively approving and authorizing
the transaction,\1\ and, if no opposing comments are timely filed, this
notice will be the final Board action. Persons wishing to oppose the
application must follow the rules.
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\1\ Due to the partial shutdown of the Federal government from
December 22, 2018, through January 25, 2019, the Board was not able
to act within the period set forth in 49 U.S.C. 14303(c). On January
28, 2019, Applicants filed a motion seeking expedited review of the
application and publication of a notice in the Federal Register. On
January 30, 2019, Stagecoach Group plc filed a reply in support of
Applicants' motion to expedite.
DATES: Comments must be filed by April 8, 2019. Applicants may file a
reply by April 23, 2019. If no opposing comments are filed by April 8,
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2019, this notice shall be effective on April 9, 2019.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21084 to: Surface Transportation Board, 395 E Street SW,
Washington, DC 20423-0001. In addition, send one copy of comments to
Applicants' Representative: Matthew J. Warren, Sidley Austin LLP, 1501
K Street NW, Washington DC 20005.
FOR FURTHER INFORMATION CONTACT: Matthew Bornstein at (202) 245-0385.
Assistance for the hearing impaired available through the Federal
Information Relay Service (FIRS) at 1-800-877-8339.
SUPPLEMENTARY INFORMATION: Applicants explain that Variant is a private
equity firm organized under the laws of the State of Delaware. (Appl.
2.) It controls 100% of the equity and vote of Project Kenwood
Acquisition, LLC, which is also organized under the laws of the State
of Delaware. Applicants assert that neither Variant nor any entity
currently under its control holds motor carrier authority or a U.S.
Department of Transportation number or safety rating.\2\ (Id.)
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\2\ Applicants state that Variant controls multiple assets,
including Curb Mobility, which provides a comprehensive mobility
platform that serves taxi and other for-hire ride operators,
regulators, service providers, and riders. (Appl. 2.)
---------------------------------------------------------------------------
Applicants state that Coach USA, Inc., which is a Delaware
corporation, controls 29 motor passenger carriers that hold federally
issued interstate operating authority \3\ and operate, in total,
approximately 2,213 buses.\4\
[[Page 5803]]
Coach USA, Inc., is a wholly owned subsidiary of Coach USA
Administration, Inc., a Nevada corporation. (Id. at 3-4.) All the
equity interests in Coach USA Administration, Inc., are held by SCUSI
Limited, a public limited holding company organized under the laws of
England and Wales. Stagecoach Group plc is the ultimate parent of SCUSI
Limited and is organized under the laws of Scotland. (Id. at 3.) \5\
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\3\ A 30th Coach USA-owned carrier, Community Transportation,
Inc., operates only on intrastate routes in New Jersey. (See id. at
6.)
\4\ This figure is derived from Exhibit 1 of the verified
application, which lists, among other things, the approximate number
of buses operated by each Coach USA carrier with active federal
operating authority.
\5\ The Board has approved several acquisitions by Stagecoach
Group plc and Coach USA, Inc., the most recent of which was in
Stagecoach Group plc--Acquisition of Control of Assets--American
Coach Lines of Atlanta, Inc., MCF 21045 (STB served Aug. 15, 2012).
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The 29 interstate motor carriers are described in Exhibit 1 of the
application as follows: \6\
---------------------------------------------------------------------------
\6\ Additional information about the motor carriers, including
USDOT numbers and motor carrier numbers, can be found in the
application.
---------------------------------------------------------------------------
Airport Supersaver Inc., which primarily operates in
Illinois;
All West Coachlines, Inc., which primarily operates in
California and Nevada;
American Coach Lines of Atlanta, Inc., which primarily
operates in Georgia, Florida, Alabama, and South Carolina;
Butler Motor Transit, Inc., which primarily operates in
Pennsylvania, New Jersey, New York, and Michigan;
Central Cab Company which primarily operates in
Pennsylvania, Ohio, and West Virginia;
Chenango Valley Bus Lines., Inc., which primarily operates
in New Jersey, New York, and Pennsylvania;
Community Coach, Inc., which primarily operates in New
Jersey, New York, Ohio, and Pennsylvania;
Community Transit Lines, Inc., which primarily operates in
New Jersey;
Dillon's Bus Service, Inc., which primarily operates in
Maryland, Virginia, and the District of Columbia;
Elko, Inc., which primarily operates in Nevada;
Hudson Transit Lines, Inc., which primarily operates in
New Jersey, New York, and Pennsylvania;
Independent Bus Company, Inc., which primarily operates in
New Jersey;
Kerrville Bus Company, Inc., which primarily operates in
Texas, Arkansas, and Louisiana;
Lakefront Lines, Inc., which primarily operates in
Illinois, Indiana, Ohio, Pennsylvania, Michigan, Tennessee, and New
York;
Megabus Northeast, LLC, which primarily operates in
Connecticut, the District of Columbia, Georgia, Massachusetts,
Maryland, North Carolina, New Jersey, New York, Ohio, Pennsylvania,
Rhode Island, Virginia, West Virginia, and Maine;
Megabus Southeast, LLC, which primarily operates in
Alabama, the District of Columbia, Florida, Georgia, Kentucky,
Louisiana, North Carolina, Tennessee, and Virginia;
Megabus Southwest, LLC, which primarily operates in
Arkansas, Texas, Louisiana, Tennessee, and Missouri;
Megabus West, LLC, which primarily operates in California
and Nevada;
Olympia Trails Bus Company, Inc., which primarily operates
in New Jersey and New York;
Orange, Newark, Elizabeth Bus, Inc., which primarily
operates in New Jersey;
Pacific Coast Sightseeing Tours & Charters, Inc., which
primarily operates in California and Nevada;
Powder River Transportation Services, Inc., which
primarily operates in Wyoming and Montana;
Rockland Coaches, Inc., which primarily operates in New
York and New Jersey;
Sam Van Galder, Inc., which primarily operates in
Wisconsin, Illinois, and Minnesota;
Suburban Trails, Inc., which primarily operates in New
Jersey and New York;
Transportation Management Services, Inc. (d/b/a Lenzner
Coach Lines), which primarily operates in Pennsylvania;
Trentway-Wagar, Inc., which primarily operates in New York
and Canada;
Tri-State Coach Lines Inc., is not currently operating;
and
Wisconsin Coach Lines, Inc., which primarily operates in
Wisconsin and Illinois.
Applicants state that the purpose of the transaction is to transfer
the ultimate ownership of the 29 carriers from Stagecoach Group plc and
SCUSI Limited to Variant. Variant seeks to acquire the carriers as an
investment and plans to manage the assets with the goal of continuing
to provide safe and reliable motor passenger transportation, while at
the same time improving long-term value. (Appl. 1.)
Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction subject to section 14303 that it finds consistent with the
public interest, taking into consideration at least: (1) The effect of
the proposed transaction on the adequacy of transportation to the
public, (2) the total fixed charges that result, and (3) the interest
of affected carrier employees. Applicants have submitted information
required by 49 CFR 1182.2, including information to demonstrate that
the proposed transaction is consistent with the public interest under
49 U.S.C. 14303(b), see 49 CFR 1182.2(a)(7), and a statement that the
aggregate gross operating revenues of the involved carriers exceeded $2
million during the preceding 12-month period. See 49 U.S.C.
14303(g).\7\
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\7\ Parties must certify that the transaction involves carriers
whose aggregate gross operating revenues exceed $2 million, as
required under 49 CFR 1182.2(a)(5).
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Applicants assert that the proposed transaction would have a
positive effect on the adequacy of transportation services for the
public. They state that, at the current time, Variant has no intention
of materially altering the nature, extent, or frequency of the service
provided by the 29 motor carriers. (Appl. 12.) Applicants state that
the carriers would continue to operate as they have been with their
existing names and trade names, but under new ultimate ownership.
Applicants further state that Variant would use its management
experience to enhance the carriers' overall financial viability while
providing safe and quality service to customers. (Id.)
Applicants argue that the proposed transaction would have no
negative impact on competition because Variant is not a carrier and
does not own or control any carriers. (Id.) They assert that there
would be continued competition in each of the categories of service
provided by the carriers because they would continue to face actual and
potential competition from numerous modes of transportation, including
competing bus services, automobiles, and more. (Id. at 12-13.)
Applicants state that the proposed transaction would increase fixed
charges, in the form of interest expense, because funds would be
borrowed to assist in financing the transaction. (Id. at 13.) They
claim, however, that such an increase would not affect the provision of
transportation services to the public. Applicants also cite to Sureride
Charter, Inc.--Acquisition of Control--McClintock Enterprises, Inc.,
MCF 21077 (STB served Nov. 2, 2017), where the Board approved a
transaction envisioning debt financing and the possibility of an
increase in interest expenses.
Regarding the interests of employees, Applicants claim that there
would be no material effect on employee or labor conditions because the
proposed transaction does not envision any immediate change in the day-
to-day operations of the carriers that could
[[Page 5804]]
negatively impact employees. (Appl. 14.)
The Board finds that the acquisition proposed in the application is
consistent with the public interest and should be tentatively approved
and authorized. If any opposing comments are timely filed, these
findings will be deemed vacated, and, unless a final decision can be
made on the record as developed, a procedural schedule will be adopted
to reconsider the application. See 49 CFR 1182.6(c). If no opposing
comments are filed by the expiration of the comment period, this notice
will take effect automatically and will be the final Board action.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available at www.stb.gov.
It is ordered:
1. The proposed transaction is approved and authorized, subject to
the filing of opposing comments.
2. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
3. This notice will be effective April 9, 2019, unless opposing
comments are filed by April 8, 2019.
4. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE, Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of the General Counsel, 1200 New Jersey Avenue SE, Washington,
DC 20590.
Decided: February 15, 2019.
By the Board, Board Members Begeman, Fuchs, and Oberman.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019-03115 Filed 2-21-19; 8:45 am]
BILLING CODE 4915-01-P
