$750 Million Acquisition Expands Capabilities, Creates Unique Transportation and Logistics Enterprise
SAN MATEO, Calif. and JOPLIN, Mo., Aug. 23 -- Con-way Inc. (NYSE:CNW) today announced that it has completed its $750 million acquisition of Contract Freighters, Inc. (CFI), a privately held North American truckload carrier based in Joplin, Mo. The acquisition adds to Con-way's portfolio a respected, well-managed company with significant market share and a substantial presence in the truckload market with its 3,000 employees and a fleet of more than 2,600 tractors and 7,000 trailers.
The acquisition positions Con-way as a unique enterprise in the freight transportation industry, offering market-leading less-than-truckload (LTL), truckload (TL) and supply chain management services with a diverse suite of high-value solutions for shippers in North America as well as globally, noted Douglas W. Stotlar, president and CEO, Con-way Inc.
"CFI is a highly strategic acquisition that immediately establishes us as a major player in the truckload market and strengthens our capabilities as a premier provider of freight transportation and supply chain solutions," Stotlar said. "We are positioning this company for growth on a global scale - one with differentiated yet complementary service offerings, and an excellent foundation for increasing shareholder value. I'm very pleased to officially welcome CFI's 3,000 employees to the Con-way organization."
CFI joins the existing Con-way Truckload to form a business unit expected to generate some $500 million in annual revenues. The division, combined with Con-way's LTL carrier Con-way Freight and global supply chain services provider Menlo Worldwide, offers customers a suite of transportation and logistics services that can cover "first-mile" sourcing in Asia or Europe to "last-mile" delivery in North America.
"As part of the Con-way enterprise, we're presented with exciting opportunities to accelerate our growth, penetrate new markets and provide a wider array of services to our customers," said Herb Schmidt, CFI's president. "We can now enjoy the benefits of Con-way's strong brand, extensive infrastructure and broad service offering. We're proud to join an organization with values and service philosophies similar to those that have served us well for many years, and which we will continue to embrace."
On July 16, Con-way announced its intent to acquire CFI's parent holding company, Transportation Resources, Inc., CFI and all other subsidiaries of the parent holding company. The company expects to provide financial statements for CFI and pro-forma consolidated financials including CFI before the end of the third quarter. The company's consolidated financial statements presented with Con-way's third quarter earnings report will include CFI's results from the date of closing.
The acquisition was funded with existing cash resources together with proceeds from debt financing.
About Con-way Inc.
Con-way Inc. (NYSE:CNW) is a $4.2 billion freight transportation and logistics services company headquartered in San Mateo, Calif. Named FORTUNE magazine's "Most Admired Company" in transportation and logistics for 2007, Con-way delivers industry-leading services through three primary operating companies: Con-way Freight, Con-way Truckload Services and Menlo Worldwide. These operating units provide high-performance, day-definite less-than-truckload (LTL) and full truckload and intermodal freight transportation, as well as logistics, warehousing and supply chain management services, and trailer manufacturing. Con-way Inc. and its subsidiaries operate from more than 500 locations across North America and in 20 countries. For more information about Con-way, visit http://www.con-way.com/.
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