Con-way announced today, July 24, that it has executed an agreement with Panther Expedited Services for Panther to purchase the expedited freight transportation business of Con-way Expedite & Brokerage. Con-way describes privately-held Panther as a best-in-class provider of critical shipment delivery services, and the purchase solidifies Panther as the largest independent expedite transportation service company in North America.
Proceeds from the sale will be between $7 million and $8 million, dependent on certain incentive provisions. Con-way expects the transaction to be concluded and reported during the third quarter, and says the sale is not expected to have a material effect on revenues.
For Con-way, the sale of the division marks the latest move in a corporate strategy to focus on core business lines. “We intend to grow and develop strategic opportunities in those markets where we already have a large presence, substantial expertise and momentum,” says Douglas W. Stotlar, president and chief executive officer of San Mateo, Calif.-based Con-way. “We’re going to invest in LTL and truckload freight transportation and global contract logistics. 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 complements its core business, expanding its network of dedicated expedite service contractors to a total of 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. Con-way Brokerage, a separate operating division involved in asset and non-asset based truckload sales, will remain with Con-way as part of the Con-way Transportation reporting segment.
As part of the transaction, Con-way has executed a non-compete agreement with Panther and has agreed to exit the expedite market immediately. The two companies are working together to ensure a smooth and effective transition of Con-way Expedite’s current operations, customers and owner-operator fleet to Panther.