Two friends cont. “The impetus for transactions like these is often owners looking to diversify their net worth,” says Kraus. “More specific to this industry, the transaction has also allowed the Hotards and Wigleys to be freed from daunting possible liabilities.” Celerity Partners says it now has a greater appreciation for just how challenging it is to build and manage market leaders in this industry. Kraus says the firm certainly realizes the outstanding market opportunity to two best-in-class operators. “This was the only solution that made complete sense,” says Hotard. “We needed to simply divest ourselves of our majority stake in our companies.” Through the involvement of Celerity Partners, Wigley and Hotard were able to do just that. Each accepted a minority share of the newly formed parent entity AAA Holdings. “We had a lot of questions going through the due diligence,” says Wigley. “Having never been through it, I found the process a little nerve racking. Frankly, I didn’t know how I would feel once this deal closed. As it has turned out, this is the difference between me sitting alone in my backyard trying to come up with the right answers, as opposed to now being able to voice my ideas in the boardroom in the company of partners.”
No regrets Neither partner is expressing any regrets. “We both continue to be in charge of our own operations,” says Hotard. “On the same hand, this also introduces us to a whole other sector of business. It takes us to the next level.” Everyone involved agrees it has turned out to be a win-win solution. “We might have combined a few back office functions, but we still maintain our own brand identities,” says Wigley. “Plus, we keep our own employees and crews on board, many of who have a vested stake in these older companies.”
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As they grow more comfortable in this arrangement, Wigley and Hotard are enjoying the chance to explore new opportunities to grow beyond their boundaries, possibly integrating other companies into the entity. In the meantime, the merger and acquisition has brought All Aboard America! and Hotard even closer. “When we agreed to join forces, we really didn’t think about doing business together because of the geography,” says Hotard. “However, in that respect, it has really been working to our advantage.” As it turns out, both operators are seeing for the first time where their respective operations actually overlap, and how they benefit as partners. There have been opportunities for All Aboard America! to relieve Calco Hotard drivers on their way to California. Pinched for time with a new contract, All Aboard was able to call on Calco for five coaches to handle the business in a quick turnaround.
Praises from Prevost AAA Holdings initialized its acquisition of the two companies with its first purchase of 10 H3-45 Prevost coaches — five for each entity. Prevost, Sainte-Claire, QB, Canada, noted in a statement to BUSRide that it regards the new company for making an important step in the industry. “Prevost is honored to be involved with AAA Holdings and proud to deliver the first motorcoaches to this highly regarded union of motorcoach brands”, said Dann Wiltgen, Prevost vice-president of Key Accounts. “We are looking forward to a mutually beneficial relationship we know will have a positive and long lasting influence on our industry.”
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