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Universal buys Alpine,  Reprint permission
Logistics services provider Universal Express is purchasing its first cargo airline. Picking from the top, it is buying 80% of the outstanding shares of Provo, Utah-based Alpine Air, the third largest regional cargo airline in the United States. Alpine has a fleet of 29 airplanes providing scheduled air cargo flights throughout the western and southwestern United States. Projected annual sales are $20 million. While Alpine's president, Gene Mallette, owns 80% of the company himself, all of Alpine's shareholders will have the opportunity to participate in this transaction as well, according to Alpine's senior corporate management. Universal chairman and CEO Richard A. Altomare says that the purchase will enable his company to become a significant player in the regional cargo airline and luggage transportation industries. Universal subsidiaries, including Luggage Express and UniversalPost Network, already provide the private postal industry and consumers with value-added services and products, logistical services, equipment leasing, and delivery of goods worldwide. The acquisition will bring with it contracts with the USPS, expanding the range of postal business. "Our first cargo airline acquisition now allows us to utilize the management team of Alpine to enhance our existing operations and advance additional airline acquisitions of which discussions have been ongoing," said Richard A. Altomare, Chairman & CEO of Universal Express. "Alpine's cash acquisition cost is approximately $12 million, not including debt refinancing. With over $30 million in assets, along with its U.S. Postal Service contracts, this undervalued cargo airline will maintain its experienced management team and remain initially as a separate trading entity," continued Mr. Altomare.
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