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Dive Summary:
- A. Duie Pyle spent $29.4 million on the Yellow Corp. real estate auction. to buy four properties, which will support profitable development after renovations to bring them “to Pyle status,” CEO Pete Latta said in an emailed statement.
- The pending acquisitions in West Virginia, Pennsylvania and New York will eventually give the regional LTL company 35 service centers in 14 states and Washington, D.C., according to the company.
- “The addition of these latest facilities will create the capacity to support the growth we believe our team is capable of achieving,” said Latta.
Dive Insight:
The Chester County, Pennsylvania-based carrier, which had only one service center since 1996, now has trucks and terminals in the northeastern U.S.
The former yellow terminals are poised to provide the LTL carrier with additional service density. The Rochester, New York, facility gives the carrier a middle ground between existing locations in Tonawanda and Syracuse.
A. Duie Pyle wins four yellow terminals
The Bridgeport, West Virginia location acquired by Yellow will be Pyle’s second LTL service center in the state, after it opened a service center in Charleston in September.
The company expanded LTL service to West Virginia and Virginia in 2022, delivering cargo from service centers in Roanoke, Richmond and Manassas, Virginia, as well as Pittsburgh, Pennsylvania and Hagerstown, Maryland.
In Pennsylvania, the Erie terminal extends Pyle’s service to the northwestern part of the state.
And a former 85-door New Penn cross-dock and maintenance facility near Harrisburg in Cumberland County is centrally located near Interstates 83, 81 and 76 to help the company service its truck fleet.
The necessary renovations should come as no surprise to Pyle.
Estes Express Lines, the second-biggest spender in the auction so far, estimated Yellow’s facilities needed $27 million in repairs before the auction. Carriers have had time to do their due diligence and visit the sites for sale, TD Cowen analysts said in a note to investors.
“Some of them (notably legacy Yellow Freight) were in dire straits,” the analysts wrote.