Old Dominion Freight Line has signed a definitive agreement to purchase assets of UW Freight Line, a less-than truckload carrier headquartered in Salt Lake City. UW Freight, which produced revenues of about $23 million for its fiscal year ended June 30, 2005, operates 18 service centers and one inland port in five states and has one service center under construction. Terms of the acquisition, announced Tuesday, Jan. 17, were not announced.
Old Dominion says its expects to complete the transaction — which includes the purchase of accounts receivables, all revenue equipment, office equipment, information systems, all service centers owned and under construction and the corporate office — by the end of January. As a result, Old Dominion plans to expand its network of 154 service centers with 16 of UW’s service centers, including the service center under construction, and to consolidate the operations of the remaining three with the company’s existing service centers.
The geographic coverage provided by these new service centers will give the company its initial direct service in Idaho and Wyoming, increasing the numbers of states in which it operates to 46. It also will enable Old Dominion to launch full-state coverage in Colorado, Idaho, Nevada and Utah, bringing the number of states with full-state coverage to 37.
“We are very pleased to begin 2006 with the purchase of a strong, high quality LTL operation like UW Freight,” says Earl E. Congdon, chairman and chief executive officer of Thomasville, N.C.-based Old Dominion. “This transaction enhances our current service offering in the western states region of the U.S., as well as our interregional capabilities, and we intend to continue the outstanding intrastate and interstate service that UW Freight has provided its customers.
“This transaction is also representative of our continuing ability to expand our market share through accretive acquisitions, in addition to our primary organic growth strategies. With an extensive record of successfully completing and integrating similar acquisitions and with the financial resources to pursue appropriate transactions aggressively, we will continue to evaluate additional potential transactions.”
