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Yellow Corp. Acquires Tech-Savvy Roadway

By Larry Dignan  |  Posted 2003-07-08 Print this article Print

Trucking company Yellow Corp. said that it will acquire rival Roadway in a cash and stock deal valued at about $966 million.

Trucking company Yellow Corp. said Tuesday that it will acquire rival Roadway in a cash and stock deal valued at about $966 million.

The deal links two of the largest trucking companies in the transportation industry. The combined company, to be known as Yellow-Roadway, will have combined annual revenue of $6 billion with domestic and international operations.

Roadway has outmaneuvered its competition by using technology to cut costs and track its workers. The companies said in a statement that they planned to leverage "service capabilities and technologies" once the merger closes. The deal is expected to deliver annual cost savings of $45 million by the end of the second year. In five year, the companies should be able to save more than $125 million, the companies said.

Under the terms of the deal, Yellow values Roadway at $48 a share with that sum evenly split between cash and stock. Yellow will also assume $140 million in Roadway debt.

Business Editor
Larry formerly served as the East Coast news editor and Finance Editor at CNET News.com. Prior to that, he was editor of Ziff Davis Inter@ctive Investor, which was, according to Barron's, a Top-10 financial site in the late 1990s. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism.
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