Inside Logistics

XPO buying Con-way

XPO will become the second largest provider of less-than-truckload (LTL) services in North America, and will expand its global contract logistics platform


September 16, 2015
by MM&D Online Staff

GREENWICH, Connecticutt and ANN ARBOR, Michigan–XPO Logistics, Inc and Con-way Inc have entered into a definitive agreement for XPO Logistics to acquire Con-way.

The transaction will enhance XPO’s range of supply chain solutions by making XPO the second largest less-than-truckload (LTL) provider in North America, and will expand the company’s global contract logistics platform. XPO will also capitalize on synergies from the combination with Con-way’s managed transportation, truckload and freight brokerage businesses.

Headquartered in Ann Arbor, Mich., 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 $5.7 billion of revenue and $528 million of adjusted EBITDA. The transaction is expected to improve 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.

The combination will strengthen XPO’s position in the highly desirable e-commerce sector, which is projected to grow at a pace of 18% to 21% annually. XPO and Con-way both have e-fulfillment contract logistics platforms in North America and Europe.