XPO Logistics Inc. announced yesterday that it will buy Con-way Inc. for $3 billion, making it America’s second largest provider of less-than-truckload services.
After the purchase, Con-way will be completely rebranded to XPO Logistics.
Executives at XPO Logistics hope that by operating their own fleet, they’ll open the door to bigger contracts with shippers, who usually prefer to work directly with trucking companies rather than with third party freight brokers. This is the first time that XPO Logistics has operated directly in trucking in North America.
XPO Logistics also acquired French trucking company Norbert Dentressangle SA in June for $3.5 billion, increasing its yearly revenue by 6 times to $15 billion.
These recent acquisitions have made XPO Logistics one of the world’s top ten logistics companies.
The $3 billion deal will include Con-way’s $290 million debt. The combined company will not include Con-way management.