It seems every time you turn around, there’s another acquisition this summer. We can now add P.A.M Transportation (NYSE:PTSI) to the long list of buyers; it acquired Metropolitan Trucking Inc. of Saddle Brook, New Jersey. Metropolitan Trucking will become Met Express Inc., a wholly owned subsidiary of P.A.M. Transportation. P.A.M. paid $79.8 million, including debt, to acquire Metropolitan Trucking on June 14.
Metropolitan Trucking was a 90-year-old, family-owned company well-known for its history with New York City. Back in 1930, Nicholas Mangino started Metropolitan by hauling coal from the mines of Pennsylvania into New Jersey and New York. Back in those days, coal was used for everything from basic heating and cooking to power plant operations.
Metropolitan Trucking has been handed down through the family, with Nicholas passing the baton to his grandson, CEO Joseph Mangino, Jr. But now, Mangino plans to retire and made the decision to sell the company to new owners. The carrier has 320 power units and is a dry van truckload carrier that generated $83.3 million in revenue with operating income of $13.5 million in the fiscal year ending on March 31.
P.A.M Transportation formed a wholly owned subsidiary called Met Express Inc. to absorb Metropolitan. According to press releases, most of the Metropolitan Trucking organization will stay on, except the retiring CEO. Drivers are being told to continue operating as normal, as there are no changes to the business model expected. The company had about 400 employees when the buyout occurred.