San Mateo, CA-based Con-way is selling its expedited operations for between $7 million and $8 million – depending on certain incentive provisions – to privately held Seville, OH-based Panther Expedited Services.
Douglas Stotlar, Con-way’s president & CEO, said the sale marks the latest move in a corporate strategy to focus on core LTL, TL and logistics business lines. The transaction is expected to close in the third quarter
“We intend to grow and develop strategic opportunities in those markets where we already have a large presence, substantial expertise and momentum,” he said. “We’re going to invest in LTL and truckload freight transportation and global contract logistics, as we believe these markets present the best prospects for material growth in long-term revenues and profits, and increased shareholder returns.”
For Panther, the acquisition expands its network of dedicated expedite service contractors to nearly 1,900 cargo vans, straight trucks and tractor-trailers in North America, while increasing its account base with Con-way Expedite’s customer list, the company said. As part of the transaction, Con-way agreed to a non-compete agreement with Panther and is exiting the expedited market immediately.
However, Stotlar noted that his company keeping the brokerage side of its former Con-way Expedite & Brokerage division – Panther only gets the expedited operations – which it plans to roll into its Con-way Transportation subsidiary.
For more information, go to www.con-way.com