The United States Bankruptcy Court for the District of Delaware Tuesday approved a $1.88 billion sale of 130 now-former Yellow Corp terminals that raises enough cash to to pay off the company's $1.2 billion debt, including $700 million owed on a COVID-19 pandemic relief loan.
XPO acquired 28 service center locations previously operated by Yellow Corporation. XPO will purchase 26 service centers and assume existing leases for the other two locations. The transaction, which is expected to close by the end of the year, complements XPO’s national network with prime real estate in fast-growing freight markets, including Atlanta, Brooklyn, Columbus, Greensboro, Houston, Indianapolis, Las Vegas, Minneapolis, Nashville, Portland and Central Pennsylvania.
“This acquisition of real estate is a once-in-a-generation opportunity to increase capacity in critical, growing freight markets, create more jobs and serve our customers even more effectively," said Mario Harik, XPO chief executive officer. "We look forward to integrating these prime sites to enhance network efficiency and drive our next decade of growth.”
Yellow's remaining owned and leased real estate is still up for sale, including 46 shipping terminals, as well as its trucks and trailers.
Among the other winners were Estes Express Lines (No. 10), $249 million for 24 terminals; Saia (No. 19), $236 million for 17 properties; and Knight-Swift (No. 5), $51 million for 13 terminals. Previously, Estes and Old Dominion Freight Line were jockeying bids for all of Yellow's terminals. A total of 20 bidders purchased 130 former Yellow properties.
