Panther to buy Con-wayÆs expedited cargo unit
Panther Expedited Services has agreed to buy the expedited freight transportation business of Con-way Expedite & Brokerage.
For Panther, the acquisition helps expand the company's North American network of service contractors to about 1,900 vans, straight trucks and tractor trailers in North America, in addition to expanding its account base with Con-way Expedite's customer list. Con-way entered a non-compete as part of its agreement to sell to Panther.
Con-way said the sale allows it to continue its corporate strategy of focusing on core business lines.
'We're going to invest in LTL and truckload freight transportation and global contract logistics,' said Douglas W. Stotlar, Con-way's president and chief executive officer in a statement released today. 'We believe these markets present the best prospects for material growth in long-term revenues and profits, and increased shareholder returns.'
Con-way Brokerage, a separate operating division involved in asset and non-asset based truckload sales, will stay with Con-way as part of the Con-way Transportation.
Con-way expects proceeds from the sale to be between $7 million and $8 million, depending on certain incentive provisions. The San Mateo, Calif.-based company expects the transaction to be finished by the third quarter of this year.