The $3 billion deal has been agreed to under terms that XPO will launch a tender offer for all of Con-way’s outstanding shares at a cash price of $47.60 per share. The deal is expected to close next month, and Con-way will then be merged with another XPO subsidiary.
In the 2015 CCJ Top 250, Con-way ranked as the country’s sixth largest carrier, while XPO ranked as the country’s 12th.
The acquisition will make XPO the second largest less-than-truckload carrier in North America, the company says.
Con-way has 582 locations and roughly 30,000 employees. The company posted $5.8 billion in revenue in 2014. It has nearly 12,000 power units and nearly 17,000 drivers.
Douglas Stotlar, president and CEO of Con-way, said shareholders, customers, drivers and employees will benefit from the acquisition.
“This landmark transaction provides immediate cash value for our shareholders and reflects the outstanding contributions of our employees over our 86-year history,” Stotlar said. “The combination will mean more services for our customers, more miles for our drivers and more career opportunities for our employees as part of XPO’s global organization. We look forward to working with the XPO team to complete the transaction and ensure a smooth transition.”