United Road Services, Inc. Establishes Major Midwest Towing Hub
21 August 1998
United Road Services, Inc. Establishes Major Towing Hub In the Midwest Region of the United StatesALBANY, N.Y., Aug. 21 -- United Road Services, Inc. announced today it has significantly expanded its national towing recovery and transport services network by acquiring one of the largest volume towing companies in North America. Servicing an estimated 300,000 vehicles per year, E&R Towing, Inc. of Markham, Illinois, had an aggregate 1997 revenue of approximately $23.5 million. The Company provides towing and transport services to the city of Chicago, its suburbs, and to other national customers such as Insurance Auto Auction. E&R currently employs over 200 people and owns approximately 90 speciality-service vehicles. The Company also maintains operations in Aurora, Illinois and Avenel, New Jersey, which is a suburb of Newark, New Jersey. Edward T. Sheehan, Chief Executive Officer and Chairman of United Road Services, Inc., said, "E&R's strategic geographic placement in Chicago significantly enhances our ability to expand our customer base in the Midwest region. It also creates a vital link in our national towing recovery and transport services network by establishing a major presence in the Midwest region of the United States." Categorizing E&R as a "nationally-known company with a long-standing excellent reputation for high-quality service," Mr. Sheehan also noted that this latest acquisition "reflects URSI's concentration upon towing recovery and transport companies that have developed a consistent, historical financial performance of strong internal growth, coupled with the ability to generate on-going substantial revenue." Formed in July 1997, United Road Services, Inc. is a leading provider of vehicle and equipment towing and transport services in the United States, with an expanding network of 42 service locations in 16 states. The Company's broad range of services includes towing, impounding, and storing motor vehicles, conducting lien sales and auctions of abandoned vehicles, and transporting new and used vehicles and heavy construction equipment. The Company's customer base includes national automobile leasing and insurance companies, automobile dealers, governmental agencies, automobile auction companies, and individual motorists. This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligations to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should also carefully review the risk factors described in documents the Company files from time to time with the Securities and Exchange Commission.