Tontitown-based carrier P.A.M. Transportation Services Inc. announced Wednesday (June 15) the acquisition of family-owned carrier Metropolitan Trucking Inc. of Saddle Brook, N.J., for about $79.8 million, including debt. The acquisition was completed on June 14.
“We are proud at PAM to announce this acquisition, our first in nearly 20 years,” President Joe Vitiritto said. “We are excited to add the Metro drivers, talented office and shop team, customers and brand to the PAM family. Metropolitan has been operating for almost 90 years as a successful family-run business. They have a very experienced group of drivers, long-standing customer relationships and a culture that is very complementary to our existing business.”
Metropolitan’s current management team is expected to remain in place and to continue operating the business from its existing locations. Its employees likely will notice little change following the deal, according to a news release. The only personnel change that’s expected will be the retirement of the CEO.
“For 90 years Metro has provided superior service for customers, a great home for our employees, and a source of pride for my family,” Metropolitan CEO Joe Mangino said. “To ensure our future was secured for the long term, my goal was to find a partner with similar values, strong financial performance and a desire to invest for growth. PAM truly cared about our drivers and other employees, and their resources will provide more opportunity for our people and more capacity for our customers. We’re proud to continue to operate with our historical culture and identity while becoming the Northeast regional face for PAM, and we look forward to a smooth transition and a bright future.”
Met Express Inc., a new P.A.M. subsidiary, acquired Metropolitan, the release shows. The nearly 320-truck dry van truckload carrier generated revenue of about $83.3 million and operating income of $13.5 million in the 12 months ending on March 31. The company has its primary operating and maintenance facilities in Bloomsburg, Pa.
“As we looked to do our first acquisition in quite some time, Metropolitan checked all the boxes on what we were looking for in a company,” Vitiritto said. “We plan to run it as a separate business, which will allow the experienced management team, drivers and employees to continue to provide the same high level of service and attention that their customers have come to expect. It also allows us to keep the culture intact for their drivers and employees.”
According to the Metropolitan website, Nicholas Mangino founded the company in 1930, and its trucks initially hauled coal in the New York metro area. The website shows the existing CEO is the grandson of Nicholas Mangino and has worked in the business his entire career. The company has about 400 employees.