Pacer Int'l Expands Intermodal Business Through Merger With Manufacturers Consolidation Service.LAFAYETTE, Calif.--(BUSINESS WIRE)--Dec. 10, 1998-- Pacer's Fifth Merger in 12 Months Expected to Improve Volumes, Equipment Balance, Service Pacer International Pacer International NASDAQ: PACR is a U.S. based holding company with operations in non-asset based third-party logistics and intermodal freight transportation services. The company's subsidiary Pacer Stacktrain pioneered the use of "double-stack" rail services. , Inc. (Pacer), a California-based multimodal Two or more modes of operation. The term is used to refer to a myriad of functions and conditions in which two or more different methods, processes or forms of delivery are used. On the Web, it refers to asking for something one way and receiving the answer another; for example requesting transportation and logistics services organization serving global, national and regional manufacturers and retailers, said it has expanded its intermodal and truck brokerage operations through a merger with Memphis-based Manufacturers Consolidation Service (MCS), an intermodal marketing company with a complementary business, including a strong presence in the Southeast. Pacer Chief Executive Officer Donald C. Orris said the merger is designed to improve Pacer's operating efficiency and service to customers by increasing the firm's volumes and by contributing to improved east-west balance of freight flows and equipment movements. He also noted that MCS offers a 26-city national sales and operating network and the drayage Drayage A trucking company freight charge for the pick up or delivery of an ocean container. (local trucking) capabilities of its Levcon subsidiary. Pacer and MCS are both non-asset-based operations, handling and managing freight and equipment for customers as a value-added service A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. , and tendering the freight to railroads rail·road n. 1. A road composed of parallel steel rails supported by ties and providing a track for locomotive-drawn trains or other wheeled vehicles. 2. and trucking concerns for underlying transportation. MCS President C.O. Turner III commented that the merger accomplishes many of the strategic goals of both Pacer and MCS. "Changes in our customers' needs and in our industry have highlighted the importance of drastically increasing our intermodal volumes, capitalizing on complementary equipment flows and drayage operations, and expanding our menu of services. This merger fulfills all those goals. Also, in a larger company, there will be expanded opportunities for the professional growth of our employees." Turner will remain involved in the business. Expansions in Both Intermodal and Logistics Sectors MCS is the fourth intermodal transportation firm to join the Pacer group since December, 1997, when Pacer (then known as Pacific Motor Transport) combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. Consolidation group (Interstate), Los Angeles-based providers of intermodal marketing, cartage cart·age n. 1. The act or process of carting. 2. The cost of carting. cartage a fee charged for carting of goods. See also: Dues and Payment Noun 1. and consolidation services. Earlier this year, Pacer merged with both Stutz & Company (Stutz) of Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). and the Cross Con group of Chicago. The operations of Stutz were consolidated into Pacer's DeSoto, Texas-based flatbed and specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. heavy-haul trucking unit, Pacer Transport. The fifth acquisition was a pair of a supply-chain management firms, Professional Logistics Management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet Co. (PLMC), and 3PL Corporation (3PL), both of Lafayette, California Lafayette is a city in Contra Costa County, California, United States. As of the 2000 census, the city's population was 23,908. It is named (in 1857) after the Marquis de Lafayette, a French military hero of the American Revolutionary War. . Improved Volumes, Freight Balance and Revenues The MCS merger strengthens Pacer's position as one of the largest intermodal marketing companies (brokers of intermodal transportation) and providers of related logistics services in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , now accounting for some 314,000 truckload-equivalent moves annually. Equally important, it brings to the combined company a strong westbound traffic flow that originates in the Southeastern region, Orris explained. Pacer, which distributes substantial volumes of freight from the West Coast to the U.S. interior and East Coast, already enjoys a strong eastbound east·bound adj. Going toward the east. eastbound Adjective going towards the east Adj. 1. business, so the combination is expected to help Pacer balance and control equipment more efficiently and improve service for customers. From $86.7 million in 1996 on a stand-alone basis, Pacer's revenues are expected to exceed $375 million for the 12-month period ended Dec. 31, 1998, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis after giving effect to the mergers with Interstate, Stutz, Cross Con, PLMC and MCS. Revenues of MCS for the 12 month period ended Dec. 31, 1998, are expected to exceed $100 million. MCS also brings to the company a broad and distinguished customer base; a solid, long-term management and employee base; an infrastructure of owner-operator trucking suppliers; and broader geographical representation, Orris added. Company description -- The Pacer group of companies provides a broad range of intermodal, trucking and logistics services -- all available through a single provider -- through its national network of sales agents, independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. and railroad/drayage partnerships. Its Pacer Logistics unit provides consolidation, warehousing, cross-dock, cartage, less-than-truckload and other supply-chain-management services. Its Pacer Intermodal division, now including MCS, arranges intermodal freight movements as well as truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno drayage and truck brokerage throughout North America for manufacturers and retailers, and provides customized electronic tracking, analysis of accessorial charges, and other information support. The Pacer Transport unit provides flatbed and heavy-haul specialized trucking services, as well as specialized consolidation services for rail carriers and intermodal rail car maintenance and repair. The Pacer group has some 635 employees, of which 215 pertain to pertain to verb relate to, concern, refer to, regard, be part of, belong to, apply to, bear on, befit, be relevant to, be appropriate to, appertain to MCS; 134 agents; and a network of more than 815 owner-operators. The group is based in Lafayette, California. -0-
FACT SHEET
Pacer International - MCS Merger
PACER INTERNATIONAL MCS
(figures not inclusive of MCS
unless otherwise indicated)
HEADQUARTERS Lafayette, California Memphis, Tennessee
26 branch offices
in N. Amer.
KEY DATES Pacer (then Pacific Established 1968
Motor Transport) acquired
from Union Pacific RR by
Donald C. Orris group
4/1997; MCS is 5th
subsequent merger.
PRINCIPAL
BUS. Intermodal marketing, Intermodal marketing,
specialized trucking, truck brokerage,
logistics services, logistics services,
consolidation, truck consolidation, cartage
brokerage,
less-than-truckload
transport, cartage,
warehousing, rail car M&R
EMPLOYEES 420 215
AGENTS 120 14
CONTRACT
DRIVERS 730 86
TRANSP.
ASSETS leased flatbed & not significant
heavy-haul trucks,
trailers, warehouses,
cross-dock &
yard facilities
KEY MGT. Donald C. Orris, CEO, C.O. Turner III, MCS Pres.
Pacer Intl.; Gary Goldfein,
Pres., Pacer Logistics;
Robert L. Cross, Pres.,
Pacer Intermodal-West;
Richard P. Hyland, Pres.,
Pacer Intermodal East;
Gerry Angeli, Pres., Pacer
Transport; Al Steiner, EVP,
Pacer Intl.; Larry C.
Yarberry, CFO
PROJECTED
REVENUES
(12 mos.
ended
12/31/98) $375 million (pro $100 million
forma, after giving
effect to mergers
with Interstate,
Stutz, Cross Con,
PLMC, MCS)
IMC NAMES
(will become
Pacer
International) ABL-Trans, Lafayette, CA; MCS, Memphis
Interstate Consolidation,
Los Angeles; Cross Con,
Chicago
SERVICE AREAS 48 states, 48 states,
Canada, Mexico Canada, Mexico
ANNUAL LOADS 180,000 134,000
RR &
STACKTRAIN
CONTRACTS APL, BNSF, CP, Amtrak, APL, BNSF, CN, CP,
CR, CSXI, IC, CR, CSXI, FEC, IC, Iowa
KCS, NS, UP Interstate, KCS, NS, UP
-0- NOTE: Issued by: Potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. & Company, Oakland Steve Potash, 510/261-1570 |
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