Academy Bus LLC--Acquisition of the Properties of Evergreen Trails Inc. d/b/a Horizon Coach Lines

Topics:  Academy Bus, Horizon Coach Lines

Brendetta S. Jones
U.S. Department of Transportation
March 5, 2015

[Federal Register Volume 80, Number 43 (Thursday, March 5, 2015)]
[Notices]
[Pages 12056-12057]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-05080]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. MCF 21060]


Academy Bus LLC--Acquisition of the Properties of Evergreen 
Trails Inc. d/b/a Horizon Coach Lines

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice tentatively approving and authorizing finance 
transaction.

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SUMMARY: Academy Bus LLC, a motor carrier of passengers (Academy), has 
filed an application under 49 U.S.C. 14303 to acquire property of 
Evergreen Trails Inc. d/b/a Horizon Coach Lines (Evergreen), a motor 
carrier of passengers. The Board is tentatively approving and 
authorizing the transaction, 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 at 49 CFR 1182.5 and 
1182.8.

DATES: Comments must be filed by April 20, 2015. Applicant may file a 
reply by May 4, 2015. If no comments are filed by April 20, 2015, this 
notice shall be effective on April 21, 2015.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21060 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Academy's representative: Fritz R. Kahn, Fritz R. Kahn, P.C., 1919 M 
Street NW., 7th Floor, Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Amy Ziehm, (202) 245-0391. Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: Academy is a motor carrier licensed by the 
Federal Motor Carrier Safety Administration (FMCSA) (MC-646780) and 
primarily provides charter bus operations in Florida. Academy is owned 
by Academy Bus (Florida) ESB Trust, which is controlled by Francis 
Tedesco, sole trustee. The Tedesco Family ESB Trust, a separate trust 
of which Francis Tedesco and Mark Tedesco are beneficiaries, directly 
controls the following noncarriers: Academy Bus, L.L.C. (ABL) \1\; 
Franmar Logistics, Inc.; Franmar Equities, Inc.; and Log Re, Inc. ABL 
owns the following carriers: Academy Express, L.L.C., Academy Lines, 
L.L.C., and Number 22 Hillside, L.L.C. Evergreen, a motor carrier 
licensed by FMCSA (MC-107638), provides charter operations in North 
Carolina and other locations. Evergreen is owned by TMS West Coast, 
Inc., a noncarrier holding company, which is in turn owned by FSCS 
Corporation, another noncarrier holding company. Francis W. Sherman is 
the controlling shareholder of FSCS Corporation, which also owns 
noncarriers TMS Canada Holdings, Ltd. and Horizon Coach Lines NC, Inc.
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    \1\ Please note that while applicant Academy Bus LLC is a 
Florida motor carrier, Academy Bus, L.L.C. -ABL- is a New Jersey 
noncarrier holding company.
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    Under the proposed transaction, Academy seeks to acquire the 
sublease to Evergreen's Durham, N.C. terminal, certain charter 
contracts, all furniture, fixtures, equipment, computers, machinery 
apparatus, appliances, signage, supplies, parts inventory, forklifts, 
shop tools, office equipment, desks, telephones, telex and telephone 
facsimile numbers and other directory listings, goodwill and other 
intangible assets, advertising, marketing and promotional materials, 
studies, reports, and all other printed or written materials used in 
and relating solely and exclusively to Evergreen's business operations 
from its Durham terminal.\2\ Academy states that this acquisition would 
allow it to expand its charter operations to serve the southeastern 
area of the United States. Academy further states that if the 
transaction is approved, it would continue to serve potential charter 
parties in the vicinity of the Durham terminal.
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    \2\ The application states that 30 vehicles that had been 
operated from the Durham terminal by Evergreen are being sold to 
Franmar Leasing, Inc., a noncarrier engaged in the business of 
leasing buses.
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    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction 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. Academy has submitted information, as required by 49 CFR 
1182.2, including the information to demonstrate that the proposed 
transaction is consistent with the public interest under 49 U.S.C. 
14303(b), and a statement that Academy and its motor carrier affiliated 
companies and Francis W. Sherman and his motor carrier affiliated 
companies have aggregate gross annual operating revenues in excess of 
$2 million.\3\
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    \3\ The showing of $2 million gross operating revenue is 
required under 49 U.S.C. 14303(g) for the Board to have jurisdiction 
over the transaction.
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    Applicant asserts that the proposed transaction is in the public 
interest because the acquisition would allow continued operations from 
the Durham terminal by an ``experienced and successful motorbus 
operator.'' \4\ Academy states that the proposed transaction would not 
diminish competition, as Evergreen would continue to operate from other 
locations in North Carolina. Academy further states that the proposed 
transaction would not result in an increase to total fixed charges. 
Finally, Academy states that the transaction would have no adverse 
effect upon the Durham terminal's employees, as these employees would 
have the opportunity to gain employment with Academy.
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    \4\ Application 5.
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    On the basis of the application, the Board finds that the proposed 
transaction 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.
    The party's application and Board decisions and notices are 
available on our Web site at www.stb.dot.gov.
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    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 as having been vacated.
    3. This notice will be effective April 21, 2015, unless opposing 
comments are timely filed.
    4. A copy of this decision will be served on: (1) U.S. Department 
of Transportation, Federal Motor Carrier

[[Page 12057]]

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: March 2, 2015.

    By the Board, Acting Chairman Miller and Vice Chairman Begeman.
Brendetta S. Jones,
Clearance Clerk.
[FR Doc. 2015-05080 Filed 3-4-15; 8:45 am]
 BILLING CODE 4915-01-P