Hungry XPO to buy US trucker Con-way for $3bn
16 / 09 / 2015
Fast growing XPO Logistics is to buy US trucking and logistics company Con-way for $3bn, including debt, making it the second largest provider of less-than-truckload services in North America.
Deep-pocketed XPO said that its latest logistics takeover – it acquired Europe’s Norbert Dentressangle for $3.2bn in June – will expand the company’s global contract logistics platform.
It stated: "XPO will also capitalize on synergies from the combination with Con-way’s managed transportation, truckload and freight brokerage businesses"
Headquartered in Ann Arbor, Michigan, Con-way is a Fortune 500 company with a transportation and logistics network of 582 locations and approximately 30,000 employees serving over 36,000 customers.
For the full year 2015, consensus analysts’ estimates for Con-way are $5.7bn of revenue and $528mof adjusted EBITDA. The transaction is expected to be substantially accretive to XPO’s earnings in the first 12 months.
All of the acquired operations – Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal – will be rebranded as XPO Logistics, as was Norbert Dentressangle.
XPO has been rapidly expanding over the last few years and in February announced the acquisition of UX Specialized Logistics.