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Con-way completes $750M acquisition of CFI
By CCJ Staff
Con-way Inc. announced Thursday, Aug. 23, that it has completed its $750 million acquisition of Contract Freighters Inc. (CFI), a privately held North American truckload carrier based in Joplin, Mo. Con-way says the acquisition adds to its 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, truckload and supply chain management services with a diverse suite of high-value solutions for shippers in North America as well as globally, says Douglas W. Stotlar, president and chief executive officer of the San Mateo, Calif-based company.
"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 says. "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,” says 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. -- along with 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. |
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