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.


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.
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.
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

Jamie Hagen Gets Real About Running a Small Fleet in an Uncertain Economy
Small fleet owner Jamie Hagen says new legal risks, volatile fuel prices, and a changing freight market are forcing small carriers to rethink how they operate -- and what they can afford.
Read More →Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival
Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.
Read More →Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival
Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.
Read More →
Data Lock‑In or Integration Lock‑Out?
Data fragmentation is costing dealerships, OEMs, fleets, and upfitters millions. Here’s why interoperability may be the fix the trucking industry needs.
Read More →What Trucking Fleets and Brokers Need to Know About This Supreme Court Case
In May, the U.S. Supreme Court ruled that freight brokers can be held liable for damages if a truck they have contracted with is involved in an accident. Listen as this transportation attorney breaks down the ruling and its implications for the trucking industry.
Read More →
The Trucking Industry’s Threat Intelligence Gap
The trucking industry has no shortage of cybersecurity reports and cargo crime statistics. What it lacks is timely, operational intelligence that fleets can actually use.
Read More →
Truck Crash Rates Are Down. So Why Do Insurance Costs Keep Rising?
ATRI’s latest research points to litigation, social inflation, and soaring claims costs as key drivers behind record-high liability premiums for trucking fleets. But there are things motor carriers can do.
Read More →
ATA Truck Tonnage Holds Steady in April at Highest Levels Since 2022
ATA’s For-Hire Truck Tonnage Index was unchanged in April after a strong March gain, with freight volumes remaining at their highest levels since late 2022.
Read More →
Fleetworthy Launches Connected Platform for Fleet Readiness Across Safety and Compliance, Toll Management, and Weigh Station Bypass
Fleetworthy has unveiled three major product launches it says mark a new era in fleet readiness.
Read More →Behind the SCOTUS Broker Ruling Part 1
Transportation attorney Greg Feary breaks down the recent Supreme Court decision that brokers can be held liable for damages in truck accidents and what it means for the trucking industry going forward.
Read More →
