OVERLAND PARK, Kan. (May 25, 2005) — Shipping giant Yellow Roadway Corp. completed its acquisition of trucking company USF Corp. on May 23, after approval by USF shareholders.
The buyout, for $1.5 billion in cash and stock, helps solidify Yellow Roadway's position as the largest less-than-truckload (LTL) carrier in the U.S., creating an enterprise with more than $9 billion in revenue and 70,000 employees.
“The acquisition of USF further confirms our position as a leading provider of global transportation services,” said Bill Zollars, chairman, president and CEO of Yellow Roadway, which is based in Overland Park. “By adding the USF companies to our portfolio, we have immediate and nationwide scale in the next-day and regional markets, which are among the fastest growing transportation segments.”
The Chicago-based USF companies will join New Penn Motor Express to form YRC Regional Transportation, which is headed by Jim Staley, former president of the Roadway Group. YRC will have its headquarters in Akron.
Paul Liska, former executive chairman of USF, has joined Yellow Roadway's board of directors; its other 10 members remain unchanged.
To provide details of the acquisition, Yellow Roadway held a meeting for investors and analysts yesterday at the Waldorf-Astoria hotel in New York City.
Yellow Roadway, a Fortune 500 company, operatess subsidiaries including Yellow Transportation, Roadway Express, Reimer Express, USF, New Penn Motor Express, Meridian IQ and Yellow Roadway Technologies. They provide an array of services for the shipment of industrial, commercial and retail goods domestically and internationally.
In July 2003 Yellow Corp. acquired Akron-based competitor Roadway Corp. for $966 million plus another $140 million in Roadway debt.