| Tuesday, 15 May 2012 |
| Dispatch Transportation (“Dispatch”) announced it acquired the construction-materials-hauling assets of Valley Aggregate Transportation (“Valley”) on April 30, 2012. The acquisition signals the Dispatch’s expansion into the Northern California market. Financial terms were not disclosed.Dispatch has long been one of the largest dirt and aggregate haulers in Southern California and Southern Nevada. Its new subsidiary will operate under the banner “Dispatch North.” Valley, a perennially significant dirt and aggregate hauler in Northern California, had recently decided to terminate its workforce and sell its assets in order to pay off insider debt-holders.Dispatch CEO Bruce Degler saw the transaction as a win-win for both Dispatch and Valley, “It has allowed us to transform what would have been the shutdown of an important regional company into a turnkey operation. We are grateful that drivers and customers have responded in short order. We are happy to have addressed Valley’s creditor issues while expanding Dispatch’s reach across California.”Dispatch COO Brent Lauer added, “This acquisition was a logical and strategic step for Dispatch as we seek to nurture relationships with existing contractors, propagate new ones and grow into a resurging backlog of private-construction and public-works projects across California. We anticipate solid growth in this market. For example, we intend to be part of the region’s solution to its levee and infrastructure issues. Thanks to the significant number of trucks, trailers and operating facilities we acquired and the key individuals we have recruited to join us, in just our first days operating Dispatch North we have already confirmed and begun executing on a sizeable backlog of business.”
Kevin Cotter, formerly of Valley and now General Manager of Dispatch North, expressed gratitude: “Dispatch recruited a core of dedicated former Valley employees and is now poised to grow in the region. Herb Culver and I are enthusiastic about continuing a 70-year-old legacy in Northern California. We are thrilled for Dispatch’s vote of confidence as we benefit from one of the strongest balance sheets and franchises in the state in order to serve long-standing customers in the region.” Cotter estimates that because of the transaction, 80 local drivers and supporting shop and administrative staff who would have faced unemployment in the event of a wind-down by Valley or were otherwise unemployed are now gainfully employed. “This is a source of pride in the region. And offering contractors a reliable logistics partner is critical. The best part is that we have made significant progress on our goals in just our first week of operations,” Cotter concluded, specifically thanking members of the Dispatch and Balmoral teams. Dispatch VP of Transportation, Wayne Teece, who led the integration team, found the work ethic, culture and professionalism of the Dispatch North team very similar to its new parent’s. “Kevin Cotter and Herb Culver are experienced and professional operators. They played a large role is making the acquisition and integration seamless. We all learned something through the process and now, as one team, we intend to achieve great success for our investors and our communities.”
About Dispatch About Balmoral |