GRAND RAPIDS — When Thomas Bylenga decided he needed to take Star Truck Rentals Inc. into a new market, he didn’t turn to brokers to help identify potential acquisition targets. Instead, he used the post office.
“We wanted to be in that general locality,” Bylenga, president of Star Truck Rentals, told MiBiz. “So I went to the yellow pages and sent letters to about five or six companies saying that we’re looking into moving into their area, and asking if they’re in a position to start thinking about transitioning.”
The letters evidently paid off. The Grand Rapids-based Star Truck Rentals just acquired Michigan Fleet Services, a Roseville-based truck maintenance firm with nine employees.
Star Truck Rentals, which employs about 330 people and has annual revenues around $60 million, intends to add truck rental services onto the existing maintenance services offered by Michigan Fleet Services, said Bylenga.
He said the company hopes to grow the Roseville location’s revenue from a starting point of $1.5 million.
This acquisition brings the total number of Star Truck’s locations to 18 – 17 in Michigan and one in Indiana – and the number of truck units the company owns to just less than 2,000.
According to Bylenga, Michigan Fleet Services will fit well with the rest of Star Truck’s locations, because, not only does Star Truck rent and sell trucks, a significant portion of Star Truck’s revenue is gathered by its maintenance business that services not just Star Truck’s vehicles.
Warner Norcross & Judd LLP and Plante Moran PLLC advised Star Truck Rental on the transaction.
The Star Truck deal wasn’t the only M&A activity of late in the trucking industry.
Byron Center-based M&K Quality Truck Sales Inc. announced Oct. 1 that it would expand into the Chicago area with the acquisition of four businesses: Chicago Mack Sales & Service, Mack of Joliet, Chicago Truck Sales & Service and Truck Lease Chicago.
The acquisition makes M&K among the five largest Volvo and Mack dealer groups in the nation, the company stated in a release. While each company will continue to operate under its own name and management, the acquisitions add over 220 new employees to the M&K roster.