Yellow Roadway Corp. will acquire USF Corp. according to press releases posted on the web sites of both companies Sunday.

According to the simultaneous releases, the agreement has been unanimously approved by the boards of directors of both companies. The acquisition is expected to close in summer 2005, and the combined enterprise is expected to have annual revenue in excess of $9 billion, with over 70,000 employees and 1,000 service locations. The combined companies will offer a broad range of transportation services including next day, inter-regional, national and international capabilities.
The acquisition further consolidates the unionized LTL sector of the trucking industry, which once dominated commercial transportation in the U.S. and was in turn dominated by the International Brotherhood of Teamsters.
The Teamsters, which had posted a brief release noting their concern about a possible merger last week, on Sunday posted a release that said it will do everything it can to protect the job security of its members.
“Our members at both companies can rest assured that we will do everything it takes to protect their job security and their livelihoods. We will carefully monitor the pending deal and do our own analysis so that our members’ interests are protected,” said Teamster President Jim Hoffa.
The notice said that Teamster officials are scheduled to meet soon with CEO’s of both companies.
According to the Yellow Roadway release, the following executives will lead company divisions and report directly to Bill Zollars, chairman, president and CEO of Yellow Roadway.
* Jim Staley, current President of the Roadway Group, will become president of the Yellow Roadway regional companies which will include New Penn Motor Express, USF Holland, USF Reddaway, USF Dugan and USF Bestway. Staley will also be responsible for the truckload unit of USF, Glen Moore.
* Bob Stull, who currently reports to Jim Staley as President of Roadway Express, will continue in that role and report directly to Zollars.
* James Welch, President of Yellow Transportation, will continue in that role.
* Jim Ritchie will continue as President of Meridian IQ, the logistics unit of Yellow Roadway, which will include the operations of USF Logistics.
* Mike Smid will remain as President of Yellow Roadway Enterprise Services and Chief Integration Officer.
It is anticipated that one current member, to be determined, of the USF board of directors will join the Yellow Roadway board of directors upon the closing of the acquisition.
A conference call to discuss the transaction with the investment community was held Monday at 10:00 ET.A replay of the call will be available beginning at 1:00 ET on Monday by dialing 1-888-203-1112, with the passcode 8010487.