TONTITOWN-, Ark. — PAM Transportation Services, Inc. announced that on June 14, the company completed the acquisition of substantially all the assets of Metropolitan Trucking, Inc. and related entities.
According to a news release, PAM expects the current management team to remain in place and to continue operating the business from its existing locations. Driving associates, non-driving associates, and customers should notice little change following the transaction.
Metropolitan Trucking, located in New York City, has approximately 320-truck dry vans. Its primary operating and maintenance facilities, which are located in Bloomsburg, Pennsylvania, will operate as an independent business under the current senior leadership team with no personnel changes expected other than the retirement of the CEO, the news release stated.
The buying entity was Met Express, Inc., a newly-formed wholly owned subsidiary of the company.
Metropolitan is described by PAM executives as a “highly profitable business generated approximately $83.3 million in total revenue ($75.4 million excluding fuel surcharge), $22.1 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and $13.5 million in operating income for the last 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 and who operate a modern tractor and trailer fleet,” according to the PAM news release.
PAM President Joe Vitiritto said, “We are proud at PAM to announce this acquisition, our first in nearly 20 years. We are excited to add the Metro drivers, talented office and shop team, customers and brand to the PAM family. Metropolitan has been operating for almost 90 years as a successful family run business. They have a very experienced group of drivers, long standing customer relationships and a culture that is very complimentary to our existing businesses. As we looked to do our first acquisition in quite some time, Metropolitan checked all the boxes on what we were looking for in a company. We plan to run 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 Metropolitan’s team, we are excited for our future.”
Joe Mangino, chief executive officer of Metropolitan Trucking, Inc., commented, “For 90 years Metro has provided superior service for customers, a great home for our employees, and a source of pride for my family. To ensure our future was secured for the long term, 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 opportunity for our people and more capacity for our customers. We’re proud to continue to operate with our historical culture and identity while becoming the Northeast regional face for PAM, and we look forward to a smooth transition and a bright future.”
The news release stated that “the enterprise value (for the deal) at closing was approximately $77.4 million, valued on a cash-free, debt-free basis and subject to a customary working capital adjustment. The transaction does not include any earn-out targets or payments. Of the closing amount, $5.0 million was placed in escrow to secure indemnification obligations. The acquisition agreements contain other customary terms and conditions.”
The purchase price paid at closing included approximately $15.5 million in assumed debt and $64.3 million paid using available cash balances.
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