Transportation Components, Inc. Announces Letters of Intent
17 September 1998
Transportation Components, Inc. Announces Letters of Intent to Acquire Eight Companies- Company Completes First Acquisition Since IPO - - Together the Transactions Have a Combined Revenue of $86.5 Million - HOUSTON, Sept. 17 -- Transportation Components, Inc. , also known as TransCom USA, announced today that it has completed one acquisition and has entered into letters of intent to acquire eight companies that distribute replacement parts and supplies and provide services for heavy duty vehicles. These firms, with combined annualized revenues of approximately $86.5 million, are located primarily in the Western, Mid-Western and Southeastern United States. Each acquisition is subject to due diligence and customary closing conditions. The Company expects to close the acquisitions by the middle of October. Terms of the acquisitions were not disclosed. The Company stated that the completed acquisition was for Parts Pacific, headquartered in South Gate, California, which had annualized revenue of $8.5 million. The acquisition further expands TransCom USA's presence in the California market which already includes Charles W. Carter Co. in southern California and Universal Fleet Supply, Inc. in northern California. A letter of intent for this transaction had not previously been announced. "We are pleased to announce our first letters of intent and acquisition since our initial public offering in late June. These are successful, well- managed companies that we expect to be great additions to TransCom USA," commented Mike Young, Chairman and Chief Executive Officer. "We continue to move forward with our stated consolidation strategy to acquire companies we believe will expand our national presence and strengthen our position in existing markets. We remain excited by the opportunities presented by our very active acquisition pipeline." TransCom USA is a leading national distributor of replacement parts and supplies for commercial trucks, trailers, and other heavy duty vehicles and equipment. The Company also provides value added services including remanufacturing, vehicle repair, fleet maintenance management, and machine shop services. With over sixty locations in the U.S. and Mexico, TransCom USA's customer base includes common carriers, private and rental fleets, independent repair shops, specialty OEMs and other end users. This press release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control which may cause actual results, performance or achievement of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those disclosed in the company's periodic filings with the Securities and Exchange Commission.