United Road Services, Inc. Completes Latest Round of Acquisitions
17 February 1999
United Road Services, Inc. Completes Latest Round of Acquisitions
ALBANY, N.Y., Feb. 17 -- United Road Services, Inc.,
a leading provider of high quality motor vehicle and equipment towing,
recovery, and transport services, announced today it has acquired four vehicle
transport companies and three towing and recovery companies with combined
trailing 12-month revenue of approximately $20 million. All of the companies
were acquired in January.
United Road Services also announced that it completed two previously
announced acquisitions, MPG Transco of Livonia, Michigan and Pilot Transport
of Brighton, Michigan. On a combined basis, these two companies have trailing
12-month revenue of approximately $43 million.
Edward T. Sheehan, Chairman and Chief Executive Officer of United Road
Services, said of this latest round of acquisitions, "We have taken the first
step in the execution of our 1999 acquisition program. These acquisitions
will enhance our overall transport capabilities, both in the new and used
automobile transport markets, as we continue to expand our national transport
network. In addition, our three recent towing and recovery acquisitions
further extend our regional towing and recovery presence in two key markets."
The largest of the new acquisitions, Car Auto Carrier, an automobile
transport company based in Fort Worth, Texas, has trailing 12-month revenue of
approximately $5.5 million. Automobile auctions are the major customers for
Car Auto Carrier and its major operating lanes extend from Dallas and Fort
Worth, Texas to Omaha, Nebraska, and throughout the states of Virginia,
Pennsylvania, New York, Mississippi, Louisiana, California, Oregon, and
Washington.
Kayco Transport of Salt Lake City, Utah, another automobile transport
company, has trailing 12-month revenue of approximately $4.8 million. A
majority of Kayco's customers are automobile dealers and automobile rental
agencies. Kayco's operating lanes extend from Salt Lake City, Utah to
Northern California; Portland, Oregon; Seattle, Washington; Denver, Colorado;
and Phoenix, Arizona. Kayco has been consolidated into Neil's Transport,
another of United Road Services' vehicle transport operations.
Blue Grass Auto Transport of Puryear, Tennessee, has trailing 12-month
revenue of approximately $3.7 million. Major customers for Blue Grass are
automobile dealers and automobile auctions. Blue Grass' major operating lanes
extend to the cities of Atlanta, Georgia; Orlando, Florida; Memphis,
Tennessee; Chicago, Illinois; Houston and Dallas Texas; and San Francisco,
California.
The purchase of Yellowstone Transport, of Billings Montana, represents
United Road Services' expansion into another Northwestern state and will
contribute to the overall service enhancement of its national automobile
transport network. Yellowstone has trailing 12-month revenue of approximately
$2.8 million. Yellowstone's customers include automobile dealers, automobile
auctions, and retail customers. Yellowstone's major operating lanes extend
from Billings, Montana throughout major cities of the Midwest and Northwest
including Rapid City, Minneapolis, Denver, Boise, Salt Lake City, and Seattle.
In the towing and recovery sector, United Road Services acquired A&B
Collier of West Nashville, Tennessee. A&B Collier has trailing 12-month
revenue of approximately $1.5 million. A&B Collier's customers include the
Nashville Police Department, automobile dealers, and various road clubs.
Ace Towing also of Nashville, Tennessee, the second towing and recovery
company acquired, has trailing 12-month revenue of approximately $713,000.
With an impound yard across from Vanderbilt University, the school is a major
customer for Ace Towing.
Both A&B Collier and Ace Towing will be consolidated into URSI's West
Nashville Division.
Finally, United Road Services acquired Delaware & South Towing Service of
Indianapolis, Indiana. Delaware & South has trailing 12-month revenue of
approximately $900,000. Delaware & South's customers include the Indianapolis
Police Department and automobile auctions.
Formed in July 1997, United Road Services has an expanding network of
58 service locations in 20 states. The Company's broad range of services
include 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 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.
For additional information, contact Anne-Marie Sheehan, Manager of
Investor Relations at 518-446-0140.