Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

XPO Logistics to Buy Con-way in $3 Billion Deal

XPO Logistics announced late Wednesday that it is buying Con-way Inc. in a $3 billion deal that will make XPO the second largest LTL provider in North America and expand its global contract logistics platform.

by Staff
September 9, 2015
XPO Logistics to Buy Con-way in $3 Billion Deal

 

2 min to read


XPO Logistics announced late Wednesday that it is buying Con-way Inc. in a $3 billion deal that will make XPO the second largest LTL provider in North America and expand its global contract logistics platform.

This year, XPO has already conducted three acquisitions—UX Specialized Logistics, Bridge Terminal Transport, and Norbert Dentressangle. Those helped push its third quarter revenue to $1.2 billion, yet its net loss widened to $78.8 million, or on an adjusted basis, $13.6 million.

Ad Loading...

Headquartered in Ann Arbor, Mich., Con-way is a Fortune 500 company with a transportation and logistics network of 582 locations and approximately 30,000 employees serving over 36,000 customers. All of the acquired operations (Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal) will merge with the XPO Logistics subsidiary that resulted from the Norbert Dentressangle deal and be rebranded as XPO Logistics.

Bradley Jacobs, chairman and chief executive of XPO Logistics, will retain these positions and lead the combined company. Douglas Stotlar, Con-way's president and chief executive officer, will serve in a limited role as an independent advisor to the combined company through the first quarter of 2016.  

If approved, the transaction is expected to close in October. XPO's offer of $47.60 per Con-way share in cash represents a premium of nearly 34% to the stock's close on Wednesday. The deal also includes $290 million of net debt.

Ad Loading...

Jacobs noted that "LTL is a non-commoditized, high-value-add business that's used by nearly all of our customers. Con-way is a premier platform that we will run with a fresh set of eyes as part of our broader offering. Importantly, we'll gain strategic ownership of assets that will benefit our company and our customers during periods of tight capacity."

XPO expects to increase annual operating profit from the acquired operations by $170 million to $210 million through cost savings and operational improvements executed over the next two years.

The combination will strengthen XPO's position in the e-commerce sector, which is projected to grow at a pace of 18% to 21% annually. XPO and Con-way both have e-fulfillment contract logistics platforms in North America and Europe.

It also will grow XPO's global ground transportation network to approximately 19,000 owned tractors and 46,000 owned trailers, 10,000 trucks contracted through independent owner operators, and access to more than 50,000 independent carriers. In North America, XPO will have approximately 11,000 owned tractors and 33,000 owned trailers, 6,000 trucks contracted through independent owner operators, and access to more than 38,000 independent carriers.

More Fleet Management

Illustration showing ladders against a blue background with Heavy Duty Trucking Emerging Leaders logo and the words "2026 nominations now open"
Fleet Management•by Staff•October 16, 2026

Nomination Deadline Extended for HDT Emerging Leaders

Just a few more days to nominate accomplished trucking fleet professionals under 40 who are making an impact and helping lead the industry forward for the HDT Emerging Leaders award. Deadline extended to October 20!

Read More →
Headshot of Mark Colson in front of a truck grille next to an American Trucking Associations logo
Fleet Management•by Deborah Lockridge•October 15, 2026

What Will ATA’s New Leader Bring to Trucking's Table?

Incoming President and CEO Mark Colson’s record in Alabama offers clues about his priorities and approach following Chris Spear’s abrupt departure as the head of the American Trucking Associations.

Read More →
Waabi-Volvo autonomous VNL truck.
Fleet Management•by News/Media Release•October 13, 2026

Volvo, Waabi Start Commercial Autonomous Operations in Texas

Volvo VNL Autonomous trucks, powered by the Waabi Driver, are hauling freight directly to third-party facilities for a customer in Texas.

Read More →
Ad Loading...
Illustration of silver robot waving his hand and a Samsara AI prompt on screen to call drivers
Fleet Management•by Staff•October 13, 2026

Samsara Launches Custom AI Agent Builder

Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.

Read More →
Overhead view of an Einride autonomous electric truck positioned between trailers at an EASE Logistics warehouse loading area in Marysville, Ohio.

Einride Driverless Electric Trucks Begin Daily Freight Operations in Ohio

Two cabless electric trucks are hauling freight between EASE Logistics facilities in Marysville, Ohio, as part of a multi-state truck automation project.

Read More →
Illustration of map with GPS markers overlaid with Geotab fleet card and a fuel pump nozzle
Fuel Smarts•by Staff•October 2, 2026

Geotab Links Fleet Card to Vehicle Data

The new card combines fuel discounts with telematics-based purchase controls. Geotab’s analysis also points to potential savings from choosing lower-priced fuel stops.

Read More →
Ad Loading...
Cyberstop column illustration showing multi factor authorization
Fleet Management•September 29, 2026

How MFA Helps Protect Trucking Fleets

Multi-factor authentication adds protection when passwords are stolen. Here’s how it works and where fleets should start.

Read More →
Three generic semi-trucks break through a fractured wall against a dark blue digital background, symbolizing trucking technology overcoming data silos.
Fleet Management•September 28, 2026

How Better Freight Data Helps Trucking Teams Get Ahead of Disruption

Trucking and logistics teams have plenty of data. The problem is getting the right information in front of the right people soon enough to act. Better-connected data can help teams spot trouble earlier and make smarter decisions before small problems become big ones.

Read More →
Photo of man in collared buttoned shirt speaking on stage in front of a backdrop that says Trimble
Fleet Management•by Deborah Lockridge•September 28, 2026

Trimble: Taking Artificial Intelligence in Trucking Beyond Faster Tasks

At Insight 2026, Trimble executives argued that fleets may need to redesign workflows to get more from AI as it introduced new products and enhancements. AI’s value will depend on how fleets combine automation with their people's knowledge.

Read More →
Ad Loading...
Geotab Whitepaper Data Tells the Story.  Why ELD Dash Cam belong together
Sponsored•September 28, 2026

Build a bulletproof fleet: Uniting ELDs and dash cams for total compliance

An ELD can prove compliance, but it cannot always prove what happened on the road. Discover how uniting accurate ELD data with AI-powered dash cam video can help your fleet strengthen compliance, defend against liability, protect drivers and reduce operational costs.

Read More →