P.A.M. Transportation Services completes Metropolitan Trucking acquisition at $77.4M valuation

Jun. 15, 2022 11:07 AM ETP.A.M. Transportation Services, Inc. (PTSI)By: Shweta Agarwal, SA News Editor
  • P.A.M. Transportation Services (NASDAQ:PTSI) +2.9% announced Wednesday the completion of Metropolitan Trucking acquisition at an enterprise value of $77.4M on cash-free, debt-free basis.
  • The acquisition comes at purchase price of about $79.8M, comprising of ~$15.5M in assumed debt and $64.3M in cash.
  • Metropolitan Trucking is a dry van truckload carrier headquartered near New York City, with facilities located in Bloomsburg, Pennsylvania. For the year ended March 31, 2022, Metropolitan Trucking reported revenue of $83.3M, EBITDA of $22.1M, and operating income of $13.5M.
  • Synergy: P.A.M. Transportation said the transaction is expected to be immediately accretive to its earnings per share.
  • The company expects to record approximately $11.1M in current operating assets and $68.7M in fixed assets on its consolidated balance sheet, including an estimated net working capital adjustment. Actual cash tax savings during the current year are estimated to be ~$14.4M.
  • "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," said Joe Vitiritto, President of P.A.M. Transportation Services.
  • Seeking Alpha Contributor's comment: "P.A.M. Transportation Delivers Growth Amidst Market Setbacks"

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