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Shipping News Yellow Roadway to Acquire USF for $1.37B
March 1, 2005
KANSAS CITY, MO—Trucking company Yellow Roadway Corp. has agreed to buy rival USF Corp. in a deal worth about $1.37 billion in cash and stock, the two companies announced. The deal announced Sunday has been unanimously approved by the boards of both companies. It also requires Yellow to assume an expected $99 million in USF debt. The acquisition is expected to close this summer. The new company will have estimated annual revenue of more than $9 billion, more than 70,000 employees and 1,000 service locations, according to a news release announcing the deal. If it is approved by the two companies' shareholders, it would be the second major acquisition for Yellow in the last 1 1/2 years. Overland Park-Kan. based-Yellow Corp. essentially doubled its size when it merged with competitor Roadway Corp. in late 2003. After that acquisition, Yellow became the nation's revenue leader among trucking companies specializing in carrying less than a truckload, or LTL. Yellow reported 2004 earnings of $184.2 million on $6.8 billion in revenue, compared with 2003 income of $40.7 million on $3.07 billion in revenue. Yellow's stock price has increased 89 percent in the past year. |
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