Buses and rail operator, Stagecoach, is looking to sell its North American bus division as it took an £85 million balance sheet hit due to low growth prospects in the bus and coach industry.
Stagecoach operates across 30 states through the Coach USA and Coach Canada brands. The company is already in discussion about a potential sale of the business.
There is a review to examine a full or partial sale of the division. Management took a non-cash impairment charge of £85.4 million based on future cashflow forecasts in America due to more intense competition.
The company, which also owns almost half of Virgin Trains in the United Kingdom has faced issues growing the Megabus brand in the US and was forced to revise long-term assumptions on growth rates after trading fell below its internal budget.
The unit has been written down to an enterprise value of $250 million although the firm is still looking for higher offers.
The buses and rail operator lost the Virgin Trains East Coast contract this year after it was nationalised by the government.