#USA #Baltimore #Access Holdings #ASTP #CVC DIF

Access Holdings Sells American Student Transportation Partners to CVC DIF

Access Holdings recently announced a significant transaction involving the sale of its student transportation platform, American Student Transportation Partners (ASTP), to funds managed by CVC DIF. This deal underscores the shifts in the student transportation industry, which has seen dramatic transformations due to advancements in technology and data analytics.

Access Holdings, recognized as an alternative asset manager that provides investors opportunities in the lower middle market, initiated this sale as part of its strategy to streamline its investments and focus on sectors poised for future growth. Since its establishment in 2021, the ASTP has grown into a formidable entity within the student transport sector, serving over 90,000 students annually through a fleet of more than 2,300 vehicles. This impressive expansion reflects a commitment to modern operational practices that address common issues within the industry, including driver recruitment and retention, as well as fleet enhancements.

The sale highlights Access Holdings’ successful implementation of its proprietary operating model, termed ‘The Access Way.’ This model capitalizes on data-driven insight, allowing them to leverage advanced analytics in decision-making. Kevin McAllister, the firm's founder and managing partner, articulated the vision behind ASTP: to revitalize traditional student transportation models through modern strategies and services. Under Access's stewardship, ASTP evolved significantly, exemplified by an astonishing sevenfold revenue increase since the initial investment.

One of the standout features of ASTP's growth has been the development of the H.E.R.O.E.S. program, a novel initiative focusing on improving driver recruitment, engagement, and retention through the use of contemporary media channels, including a mobile podcast studio. This innovative approach not only bolstered the company’s workforce but also positioned ASTP as a forward-thinking leader in the industry.

Astutely navigating challenges presented by an aging workforce and diversifying needs, Access and ASTP worked collaboratively to map market demands, facilitating substantial geographic expansion. From initially working with just seven school districts and relying on a mere 435 vehicles in 2021, the company expanded its reach to over 50 districts across three states by 2025. This impressive growth trajectory is more than a testament to the operational enhancements implemented but represents Access's keen vision of strategically addressing market gaps through effective partnerships.

Tod Eskra, CEO of ASTP, praised the strategic direction provided by Access, noting that their collaboration equipped ASTP with the innovative frameworks and adept talent necessary for sustainable growth. As they transition to this new phase under CVC DIF, ASTP is poised to further enhance its service offerings and operational capabilities, having laid a foundational groundwork through its partnership with Access Holdings.

Financial advisement for the transaction was provided by Lincoln International, Miles Stockbridge, and RSM, ensuring a seamless transition for all parties involved. This sale is not just a business transaction; it represents a significant shift towards a more modernized approach to student transportation, paving the way for improved services that prioritize safety, reliability, and technological advancement.

Access Holdings, established in 2013, currently manages approximately $2.4 billion in assets. Their commitment to the lower middle market continues to open doors for innovative strategies that support enduring economic growth. For more information about Access Holdings and its ventures, visit accessholdings.com.

Meanwhile, American Student Transportation Partners remains dedicated to delivering high-quality service that ensures students and their families can access education safely and reliably. Their future with CVC DIF promises even more advancements in the industry, resonating with their core mission of service to the community.

In conclusion, the strategic sale of ASTP to CVC DIF marks a promising milestone for Access Holdings, setting a precedent for the future of student transportation management. As technology and operational efficiency continue to evolve, ASTP stands ready to meet these challenges head-on, ensuring that they remain a leader in the field of student transportation.