The owner of Yellow Cab and related shuttles, Pittsburgh Transportation Group, is being sold to a French transportation conglomerate with expansion plans in and outside Allegheny County, said the local company on Monday.
Veolia Transportation is the North American arm of Veolia Transport, based in Paris. Founded more than 150 years ago, Veolia operates cabs, buses, rail and maritime transportation services in 25 countries and employs more than 72,000. The North American unit does business in 18 U.S. states, including major markets such as Boston, Denver and Baltimore.
Pittsburgh Transportation, based in Manchester, is the county's largest privately held transportation group. It operates 685 cabs, limos and buses; employs more than 300 people; and engages 450 independent contractor/drivers. It also owns Peoples Cab, Express Shuttle, Embassy Coach/Limousine Service, Star Paratransit, PTG Charter Services and Freedom Coach.
Owner and CEO James Campolongo said Pittsburgh Transportation has no plans to lay off workers. Terms of the deal, which should close this month, were not disclosed.
But there will be changes. Veolia plans to expand the cab fleet to 375 from 300, he said. The new owners will continue adding the latest technology to the fleets, such as satellite dispatch systems that make trips more efficient and security cameras in cab interiors.
"Veolia is going to invest a lot of money in Pittsburgh," said Campolongo, who agreed to remain CEO of the local operation for five years.
"With the casino going up and the increase in Downtown living, it was a good time to sell," he said. Veolia, which also operates airport shuttles in nearly 50 U.S. cities, approached Campolongo about a deal more than a year ago.
In addition, Veolia plans to seek transportation management contracts, such as for school bus fleets, in the counties surrounding Allegheny, he said.
"At first, the employees said, 'Who is Veolia⢠Does this mean we have to learn to speak French?' " said a smiling Campolongo of employees' initial apprehension.
The pending sale of Pittsburgh Transportation is the latest local company to change to a foreign owner in the last few months.
Kennywood Entertainment is close to completing the sale of its storied amusement park and four sister venues to Parques Reunidos of Spain. The deal, announced Dec. 11, includes the park in West Mifflin, Sandcastle Waterpark in West Homestead, Idlewild & Soak Zone in Ligonier and two other parks.
Respironics Inc., the Murrysville maker of sleep-therapy and breathing-aid devices, was acquired by Royal Philips Electronics, for $4.9 billion on March 17. The local company has been folded into the Dutch giant's health care unit.
The state Public Utility Commission, which must approve such ownership changes, had not received any objections yesterday, the deadline for filing them, said a spokeswoman in Harrisburg. The deal was first disclosed in the agency's bulletin April 19.
Pittsburgh Transportation was previously part of a larger corporation, Coach USA, from 1998 to 2003. Campolongo bought back the local company in 2004.
