United Road Services, Inc. Expands its National Operations
1 December 1998United Road Services, Inc. Expands its National Operations
ALBANY, N.Y., Dec. 1 -- United Road Services, Inc. , a leading provider of high quality motor vehicle and equipment towing, recovery and transport services, today announced it has acquired a vehicle transport company and a towing company, and has signed definitive agreements to acquire two other vehicle transport companies, which it believes will significantly expand its national transport operations. On a combined basis, these companies have an annual revenue run rate of $47 million. MPG Transco Ltd. of Livonia, Michigan, the largest of the companies to be acquired, provides national automobile transport services to major automobile manufacturers, including General Motors, Volkswagen, Audi, Honda, and Mazda. MPG currently has over 200 employees, operates approximately 130 specialized service vehicles, and hauls an estimated 300,000 vehicles per year. In addition to Livonia, MPG has operations in Newark, New Jersey; Toledo, Ohio; and Boston, Massachusetts. MPG's anticipated 1998 revenue is approximately $23 million. Pilot Transport, Inc. of Brighton, Michigan, the second company to be acquired, is a leading provider of specialty auto transport services. Pilot provides transport and storage services for prototype, test, and promotional automobiles, many of which are transported to and from test sites, shows, and public relation events in customized, closed vehicle carriers. Pilot's largest customer in this area is General Motors. Pilot also transports show vehicles for BMW, Honda, Mitsubishi, Porsche, and Saab. Pilot Transport currently employs approximately 100 employees, and has a fleet of 70 specialty service vehicles with a satellite operating division in Tempe, Arizona. Pilot's anticipated 1998 revenue is approximately $20 million. Completion of the MPG and Pilot acquisitions is contingent upon satisfaction of customary conditions to closing. United Road Services also announced that it has acquired Alaska Vehicle Transport, Inc. of Anchorage, Alaska. Alaska Vehicle Transport provides commercial and personal auto transport between the lower 48 states and Alaska. The company's major customers include Arco, British Petroleum, Marathon Oil, Exxon, and Texaco. Alaska Vehicle Transport also has operating divisions in Seattle, Washington, and Dallas, Texas. Its anticipated 1998 revenue is approximately $4.9 million. Edward T. Sheehan, Chairman and Chief Executive Officer of United Road Services, Inc. said, "We expect these acquisitions to significantly strengthen both our national and regional presence as a high quality provider of new and used automobile transport services. The industry is evolving towards a more regional distribution of new automobiles, and we believe these acquisitions will significantly complement this trend and enable us to substantially increase our presence in both the new and used auto transport markets." Mr. Sheehan also noted that MPG, Pilot and Alaska Vehicle Transport all have a history of providing quality service to national customers. "We are confident that United Road Services will be able to enhance the strong relationships these companies have developed with their national customers. In addition, by entering three new states, Alaska, Massachusetts and Ohio, we believe we will further expand our customer base both in the Northwest and the Northeast." In other news, United Road Services announced it has enhanced its towing operations in Las Vegas, Nevada, by acquiring D&M Service. D&M operates out of Las Vegas and will be consolidated into a neighboring URSI company. D&M Service currently has 10 employees, 11 trucks, and provides heavy-duty towing and emergency road service. D&M had 1997 revenue of approximately $450,000. Upon closing of these acquisitions, United Road Services, Inc. will have a network of 54 locations in 19 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, new car manufacturers, automobile dealers, governmental agencies, automobile auction companies, and individual motorists. More information regarding United Road Services, Inc. may be obtained from the Company's web site at http://www.unitedroad.com. 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 obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors described in documents the Company files periodically with the Securities and Exchange Commission.