Freight transportation and logistics provider Con-way Inc. ,announced today it has entered into an agreement to sell off its expedited freight transportation business, Con-way Expedite, to Panther Expedited Services Inc.,a provided of critical shipment delivery services in Seville, Ohio.
As with the decision earlier this summer to shutter its domestic air-forwarding operating subsidiary, Con-way Forwarding , Con-way said this transaction will allow it to focus on its core businesses-surface freight transportation, global contract logistics and less-than-truckload (LTL) and truckload (TL) services, a company spokesman told Logistics Management.
These [core businesses] are what we do best and it is where we have the largest market presence and the most expertise, said the Con-way spokesman. And we are going to focus on growing in those segments, which is good news for our customers in those areas.
In a letter addressed to customers, Panther executive vice president sales and marketing Steven D. Wharton said this acquisition solidifies Panthers position as the largest independent provider of expedited transportation services in
And as part of the agreement, he said Con-way has agreed to exit the expedite market immediately and to deliver Panther a non-compete agreement along with its customer list. This acquisition also extends Panthers network of dedicated expedite service contractors to approximately 1,900 cargo vans, straight trucks and tractor-trailers in
Financial terms of the sale are expected to be between $7 and $8 million, according to a Con-way statement, and the transaction will be concluded this quarter.