Yellow Buys Jevic
June 08, 1999
Less-than-truckload giant Yellow Corp. plans to buy Jevic Transportation for about $200 million. The deal will create one of North America's largest multiregional LTL transportation companies.
Jevic specializes in regional and inter-regional LTL and truckload freight in the Northeast and upper Midwest. It will become part of Yellow's new multiregional transportation services holding company. The holding company also includes Saia, an LTL carrier serving the Southeast; WestEx, serving California and the Southwest; and Action Express, serving the Pacific Northwest and Rocky Mountain States.
The deal, while improving Yellow Corp.'s competitive position, will cause the company's financial profile to deteriorate, according to Standard & Poor's, which placed its ratings for the company on CreditWatch. Yellow's total debt is expected to rise to around $360 million from $157 million.