PAM Transport buys New York-based trucking company
TONTITOWN-, Ark. – PAM Transportation Services, Inc. announced that on June 14, the company completed the acquisition of substantially all of the assets of Metropolitan Trucking, Inc. and related entities.
According to a press release, PAM expects the current management team to remain in place and continue to operate the business from its existing locations. Driver associates, non-driver associates, and customers should notice little change after the transaction.
Metropolitan Trucking, located in New York, has about 320 dry vans. Its primary operations and maintenance facility, located in Bloomsburg, Pennsylvania, will operate as an independent business under the current management team, with no personnel changes other than the retirement of the CEO, the statement said. Press.
The purchasing entity was Met Express, Inc., a new wholly-owned subsidiary of the Company.
Metropolitan is described by PAM executives as a “highly profitable business that generated approximately $83.3 million in total revenue ($75.4 million excluding fuel surcharge), $22.1 million in earnings before interest, taxes and amortization (EBITDA) and $13.5 million in operating income for the trailing twelve months ending March 31, 2022. EBITDA is a non-GAAP financial measure.
Metropolitan also has “experienced driving associates focused on safety and customer service who operate a modern fleet of tractors and trailers,” according to PAM’s press release.
PAM President Joe Vitiritto said, “At PAM, we are proud to announce this acquisition, the first in nearly 20 years. We are delighted to add the Metro Drivers, talented office and workshop team, customers and brand to the PAM family. Metropolitan has operated for nearly 90 years as a successful family business. They have a group of very experienced drivers, long-standing customer relationships and a culture that is very complementary to our existing business. As we were looking to make our first acquisition in some time, Metropolitan ticked all the boxes on what we were looking for in a business. We plan to operate it as a separate business, which will allow the experienced management team, drivers and employees to continue to provide the same high level of service and attention that their customers have come to expect. It also allows us to keep the culture intact for their drivers and employees. With our current team at PAM and the addition of the Metropolitan team, we are excited for our future.
Joe Mangino, General Manager of Metropolitan Trucking, Inc., said, “For 90 years, Metro has provided superior service to its customers, a great home for its employees and a source of pride for my family. To secure our long-term future, my goal was to find a partner with similar values, strong financial performance and a desire to invest for growth. PAM truly cared about our drivers and other employees, and their resources will provide more opportunities for our employees and more capability for our customers. We are proud to continue operating with our historic culture and identity while becoming the North East regional face of PAM, and look forward to a smooth transition and a bright future.
The press release stated that “the enterprise value (for the agreement) at closing was approximately $77.4 million, valued on a cash-free, debt-free basis and subject to customary adjustment of the working capital. The transaction does not include any earn-out target or payment. Of the closing amount, $5.0 million has been escrowed to secure indemnification obligations. The acquisition agreements contain other usual terms and conditions.
The purchase price paid at closing included approximately $15.5 million of debt assumed and $64.3 million paid from available cash balances.
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