Less-than-truckload carrier Estes said Monday it has started opening terminals it has acquired from defunct Yellow Corp. as part of a “national expansion.”
The carrier acquired 24 service centers for $249 million at Yellow’s (OTC: YELLQ) first auction, which concluded in early December. It picked up five leased properties for $35 million at a second auction a couple of weeks later.
A more than $1.5 billion stalking horse bid from the company in September set the minimum valuation for Yellow’s real estate portfolio ahead of the auctions. That bid eclipsed an offer from rival carrier Old Dominion Freight Line (NASDAQ: ODFL).
Estes opened a 58-door terminal in Florence, South Carolina, last week. It also opened locations in Reno, Nevada (54 doors), and Cinnaminson, New Jersey (92 doors). The latter two properties were acquired from Yellow’s estate.
In total, Estes plans to open at least 20 terminals this year, the first eight by the end of June. The company will add locations in Tacoma, Washington; San Fernando Valley, California; Detroit; and Austin, Texas, among other areas this year, adding 985 doors to its network of more than 10,000 doors.
Estes has also added more than 130 tractors and 6,000 trailers, as well as other equipment, from Yellow’s former locations.
“These acquisitions represent the single biggest influx of terminals and equipment in Estes’ recent history,” said Webb Estes, the company’s president and chief operating officer.
Other carriers recently reopened former Yellow terminals.
Last week, XPO (NYSE: XPO) said it had opened three of the 28 locations it acquired from Yellow as part of an $870 million acquisition, and Saia (NASDAQ: SAIA) said it had begun the relaunch of the 28 locations valued at $244 million that it purchased from the estate.
“Acquiring these terminals was just step one — we’re now focused on putting them to work as quickly as possible to better serve our customers, which is exactly what we’re doing with these first ones,” said Carrie Johnstone, Estes’ vice president of customer experience and innovation.
Freight Zippy
Amazing that without the albatross of a union hanging on a company’s neck, they can succeed.
Yellow, just like every union LTL carrier was a disaster.
Take the same exact terminals and equipment suddenly they are part of a profitable enterprise.
There is a significant portion of the shipping population that refuses to use union carriers.
This is why.
Joe
How do you apply with this company
Shaggy
This is a great move for Estes plan of profitability and growth! Lead, follow, or get out of the way! Estes is set for the future and is leading the way. And, Joseph, you are a wolf in Sheep’s clothing! The last “Revelation” is Jesus Christ. You have no “new knowledge” of anything! And, just an F.Y.I. Matthew 24:36 says;
36“But of that day and hour no one knows, not even the angels of heaven, but My Father only…. so, are you calling God a liar by telling others He spoke to you with a new revelation? Sit down son before you hurt yourself!
Joseph
There is No one getting out of this Alive Sheeple! Make it or go broke doesn’t matter in the whole scheme of things! I would seek Jesus! And only Him! For what’s to come is our cleansing! We have sinned far too long! We have killed everything in this world 🌎! I hope that all Repent! We are living in the Biblical end times! 7 years of suffering first then comes the 7 Horsemen! I’m Joseph.. back in 2018 Jesus revealed Himself to me! He Blessed me with knowledge no man has ever been blessed with! We have less than a decade! Kneel unto the Father! You will be forgiven! He will not forsake in the end! See you in Paradise besides Jesus Christ!! Godbless!
Jeff Munday
Let’s not forget that Estes’ acquisition was all cash, and Estes remains debt-free and privately-owned. All very important factors for survival.
Mike.P
These companies know what they are doing Yellow didn’t.
Joe Sunday
Just watch…this is the beginning of the end. Grow, grow, grow, grow, grow, like a balloon until forces get beyond its control and then it’s just “BUST”. Witness Yellow and so many others. Will anyone ever learn???
Mike Jacques
As much as yrc has sold they should be able to pay my little. 6000. + owed to me