Dive Brief:
- Pitt Ohio will expand its direct LTL service to New York following the acquisition of equipment and terminal assets from Teal's Express, the companies announced earlier this month. The transaction price was not disclosed.
- The service expansion will take effect Aug. 14, one day after Pitt Ohio is set to obtain the assets, according to a news release. Teal's Express will close, and Pitt Ohio will integrate the LTL service provider's employees, equipment and facilities into its existing operations.
- Pitt Ohio already has an established relationship with Teal's Express, as the two have partnered on LTL service to and from New York since 2016.
Pitt Ohio expands into New York with Teal's Express deal
Dive Insight:
Pitt Ohio is already able to provide LTL service across North America, but the company relies on regional partners and sister companies for transportation beyond the Mid-Atlantic and Midwest regions of the U.S. Those areas are where the Pittsburgh-based company's terminal footprint is concentrated in.
Pitt Ohio has access to 32 additional terminals via three sister companies, with Ross Express providing a similar LTL service to and from New York, according to the news release. However, the most recent deal gives it a direct terminal presence in New York — eight of Teal's Express’ 10 terminals are located in the state, which it has served for 96 years.
"The Teal family sees this as a unique opportunity for their customers and employees, as Pitt Ohio brings tremendous resources to the table," according to Teal's Express' website, adding that customers will be notified of changes throughout the integration process.
Teal's Express' experience is valuable, New York and other Northeast states have a reputation for being hard to haul in due to stringent regulations and higher costs relative to the rest of the U.S. For some carriers, buying an existing player in the region is a more viable path to success than expanding independently.
P.A.M. Transportation Services, for example, acquired Metropolitan Trucking earlier this year to become "the Northeast regional face for PAM," Metropolitan CEO Joe Mangino said in a statement when the deal was announced. Metropolitan has locations in New Jersey, Pennsylvania and Illinois.
