Roadway Corp., Akron, Ohio, is buying Arnold Industries of Lebanon, Pa., for $475 million.

Roadway Corp. is the parent of Roadway Express, one of the nation's largest transportation companies providing LTL and truckload freight services throughout North America. Arnold is the parent company of less-than-truckload carrier New Penn Motor Express and truckload carrier Arnold Transportation Services. They will become subsidiaries of Roadway Corp. and will continue to operate under their own names.
The deal gives Roadway entry into the next-day ground market through New Penn Motor Express. Headquartered in Lebanon, Pa., New Penn is a next-day regional LTL carrier serving 12 Northeastern states and parts of the Southeast, Midwest and Canada through relationships with other regional carriers.
"Next day is the fastest growing segment in the surface transportation industry," said Michael Wickham, Roadway chairman and CEO. "It also provides attractive, sustainable yields."
Because Roadway Express covers all of North America with two-day and beyond transportation, the two companies will be two distinct networks with no duplication of service.
The deal also allows Roadway to expand its truckload business through Arnold Transportation. Headquartered in Jacksonville, Fla., the company provides irregular route and dedicated truckload services. The company specializes in short-haul operations in the Northeast, Southeast, Midwest and Southwest.
As part of the agreement, the management team at Arnold Logistics and Arnold President and CEO E.H. Arnold have the exclusive right to buy Arnold's logistics operations for $105 million in cash from Roadway after the acquisition of Arnold Industries is completed.
Both boards of directors have approved the transaction, which is subject to the approval of Arnold shareholders and customary regulatory approvals. The acquisition is expected to be completed before the end of the year.
Kenneth Leedy, president of New Penn, will become president of the newly formed Next-Day Group at Roadway Corp. Stephen O'Kane, currently New Penn's executive vice president, will become president of New Penn Motor Express.
Michael S. Walters will continue in his role as president and CEO of Arnold Transportation Services, and will report to Robert L. Stull, vice president of new venture commerce at Roadway Corp.