Located in the heart of the South Loop, Metropolitan Limousine has been operating a private chauffeured service in the Chicagoland area since 1972. Since its founding, Metropolitan Limousine has developed a network of affiliate partners across the U.S. and Canada, and in major cities throughout Europe, Asia, South America, and Australia to accommodate clients traveling nationally and internationally.
“Metropolitan Limousine is one of the oldest and largest transportation services in the Chicago market and provides the highest-quality of limousine services in the city,” said Scott Solombrino, President and CEO for Dav El / Boston Coach, in a statement. “Metropolitan’s staff consists of well-trained and hardworking employees and we are excited for them to join our team. Chicago is a key market for our business and this acquisition positions us as a major operator there, providing access to all the top luxury hotels in Chicago, which Metropolitan Limousine currently services.”
“One day six months ago, I called them,” Solombrino said. “I said, ‘I think we have an interest and we want to talk to you.’ We did a lot of due diligence. We put together a deal that was fair and solid for them and provided a path for retirement. The deal went smoothly, it was well negotiated, and it provides a good exit strategy.”
Although terms of the deal were not disclosed, Solombrino said Metropolitan is a highly profitable company that will be completely “accretive” to Dav El / BostonCoach. The global chauffeured services operation along with Marcou’s other holdings will reach more than $300 million in annual revenues.
Metropolitan’s 220 vehicles will bring the Dav El / BostonCoach fleet total to about 2,000 company-owned vehicles in cities across the U.S. All Metropolitan employees are staying on, with Mulligan and Milos running operations day to day. The company will keep its headquarters in downtown Chicago and a facility near O’Hare International Airport. “This gives us huge critical mass in the third or fourth largest chauffeured car market in the U.S.,” Solombrino said. “We take the market very seriously.”
Dav El / BostonCoach also gains multiple Fortune 500 and five-start hotel clients throughout the Chicago region.
“The opportunity provided to Metropolitan by the Dav El / BostonCoach acquisition is an exciting one that offers multiple benefits for our customers and our company,” Milos said in a statement.
“We have had a longstanding and beneficial business relationship with Dav El / BostonCoach for nearly a half-century,” added Mulligan in the statement, “and the acquisition ensures positive growth opportunities and a broader range of options available to our customers.”
The purchase of Metropolitan Limousine closely follows Dav El / BostonCoach’s acquisition of San Diego’s Torrey Pines Transportation in October. Solombrino told LCT the two acquistions are part of a long-term strategy to deepen the global network’s reach into more metro markets.
“This company is a gem,” he said of Metropolitan. “You don’t get these opportunities often. Our biggest problem long-term will be finding the right talent. Oil prices are low, the economy is coming back and unemployment is low. We’re still very bullish on buying assets that are valuable long term in this transportation sector. We want to find companies that run great operations.”
Sources: Dav El / BostonCoach press release; Martin Romjue, LCT editor
LCT background article: BostonCoach Owners Buy Dav El
Related LCT article: Solombrino Sounds Off On Business Strategy
Keywords
Boston operators BostonCoach business deals business expansion business growth Chicago operators Dav El Chauffeured Transportation mergers & acquisitions Metropolitan Limousine
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