U.P. buys Utah trucking firm

by Canadian Shipper

Union Pacific Corp. of Omaha, Nebraska, is purchasing Utah-based Motor Cargo industries Inc. a regional trucking company, in a deal valued at $80 million.

Motor Cargo Industries Inc. will operate under U.P.’s trucking subsidiary, Overnite Holding Inc., which also includes Overnite Transportation of Richmond, Va.

Overnite offers service nationwide but operates primarily in the eastern half of the United States. With the acquisition, Overnite hopes to expand its trucking services westward, where Motor Cargo largely operates.

Overnite says it was looking to increase its presence in the West. Motor Cargo was attractive because it was a less-than-truckload company, a growing sector of the trucking industry. Such companies carry multiple shipments on the same truck.

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