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XPO Logistics to buy Con-way for $3 billion

September 09, 2015

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According to JOC.com, XPO Logistics will buy Con-way, one of the largest U.S. trucking operators, for $3 billion, bringing XPO’s total revenue to $15 billion. Chairman and CEO Bradley S. Jacobs broke the news today. 

If approved, the deal will add the second-largest U.S. less-than-truckload carrier to XPO’s increasingly diverse international portfolio of logistics and transportation companies.

Con-way, a $5.8 billion company, also owns Menlo Logistics, the 14th largest U.S. third-party logistics provider, according to SJ Consulting Group data, and Con-way Truckload.

The Con-way buyout would follow the $3.5 billion acquisition of European logistics trucking and logistics operator Norbert Dentressangle, now rebranded as XPO Logistics, in June.

“We will run the business with a fresh set of eyes,” Jacobs told JOC.com. “We see an opportunity to improve its profitability by $170 million to $210 million within two years.”

Jacobs said he expects the acquisition to close in October. Current Con-way Chairman Douglas W. Stotlar will stay with the company for six months in an advisory capacity, he said.

“This is a good business that we plan to make into a great business,” Jacobs said.

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