"New Mayflower" Makes its Indianapolis Debut.

INDIANAPOLIS--(BUSINESS WIRE)--April 4, 1995--New management leadership, retention of Indianapolis headquarters, and increased attention to strengthening its agency family are top priorities of Mayflower Transit, Inc. under the new ownership of St. Louis-based UniGroup, Inc., according to UniGroup and Mayflower executives comments at a Tuesday news conference.

UniGroup completed its purchase of Mayflower Transit from Mayflower Group, Inc. on Thursday, March 30. According to UniGroup President Robert J. Baer, UniGroup paid approximately $90 million for Mayflower, the fourth-largest household goods carrier in the United States. UniGroup also owns United Van Lines, the nation's largest mover. UniGroup provides centralized services to its operating subsidiaries, including United Van Lines; Vanliner Insurance Company; and United Leasing, Inc., which supplies vans, apparel, and other equipment for professional movers.

James L. Wilson, a former executive of UniGroup and United Van Lines, has been named the new president and chief operating officer of Mayflower Transit, succeeding Michael L. Smith. Wilson, a 17-year veteran of the moving industry, met with Mayflower management on Friday, emphasizing that a top priority would be finding ways to strengthen the family of Mayflower agents who provide moving services for some 160,000 shipments each year.

UniGroup is developing a management team composed of Mayflower veterans and other experienced transportation professionals. Among senior-level management changes implemented Friday, it was announced that two former United Van Lines executives have been appointed to similar Mayflower positions. Pete M. Million is now vice president of Mayflower's domestic operations; Donald E. Ellington is vice president of the carrier's finance and administration/information services areas.

Baer said that UniGroup will continue to operate Mayflower Transit separately from United Van Lines, with the two carriers remaining business rivals. In 1994, Mayflower commanded an 11 percent share of the intercity moving market, while United had a 21 percent share.

"Mayflower and United, while both committed to delivering quality service, have different operating philosophies and policies," Baer noted. "Over time, we anticipate standardizing a number of business practices through UniGroup, although the identities and traditions of the two carriers will remain separate and distinct."

Certain Mayflower operations, notably its driver training facility and truck maintenance facility, are being studied for possible shifts in emphasis. United Van Lines, Baer explained, does not operate an extensive fleet of its own, relying on its agents to provide vans for a majority of shipment hauling. Mayflower operates a corporate fleet of over 600 vans. Business decisions regarding the continued operation of the Mayflower "house" fleet will have a bearing on the training and maintenance activities, Baer said.

Although UniGroup plans to consolidate various support functions serving the two van lines, Baer does not foresee major reductions in the Carmel work force. United Van Lines employs approximately 950 in its suburban St. Louis headquarters; employment in Mayflower's Carmel offices is 700.

Wilson, who has served most recently as executive vice president-marketing for UniGroup, Inc., was formerly executive vice president of United Van Lines, overseeing the carrier's day-to-day operations. He said he is viewing his new challenge with optimism and enthusiasm. He noted that he is moving his family to Indianapolis, underscoring Unigroup s intention to maintain Mayflower's headquarters in Carmel.

"Mayflower Transit is the most widely recognized name in moving," Wilson said. "It has experienced some difficult years because of ownership changes. Unigroup's ownership promises stability as well as the availability of technological and other resources which will help the Mayflower ship set sail once more on calmer seas."

UniGroup paid cash for Mayflower, a method which, Baer said, will serve to stabilize the outlook of the carrier. Mayflower's financial condition had been negatively affected when, in the mid-1980s, it successfully registered a hostile takeover attempt. Sustained debt problems led to Mayflower Group announcing last summer that Mayflower Transit would be sold, together with Mayflower Contract Services, Inc., a contract passenger transportation company based in Kansas. Mayflower Contract Services was sold last week to Laidlaw Inc. of Canada.

Wilson, Mayflower's new president, stressed that Mayflower would remain an active member of the Indianapolis corporate community, where the carrier has long sponsored local sporting and other events.

"If anything, you re going to see the Mayflower name more often under UniGroup ownership," Wilson said. "In the St. Louis area, United Van Lines has a major corporate presence, and the same community commitment will be part of the new Mayflower."

CONTACT: United Van Lines

Cliff Saxton, Jr. at 314/349-2710