|On the acquisition trail
Consolidation continues within the logistics community. From small combinations to Yellow's acquisition of Roadway Express, carriers and third-party logistics companies are looking for suitable matches to expand market reach or add capacity or capabilities.
For instance, U.K.-based third-party logistics (3PL) giant Exel (www.exel.com) has acquired Cappelletti Spa, an Italian logistics provider based in Milan. Cappelletti's existing base of 3PL business will provide Exel with a platform from which to develop a broader presence in the fast growing Italian market, according to Exel.
Asset-based Market Transport Ltd. (www.markettransport.com) has acquired transportation broker InTransit. The combined company was expected to generate nearly $200 million in revenue for 2003. Market Transport, which offers truckload services, including dedicated fleets and intermodal services, gains access to InTransit's brokerage services and internet-based communications and profitability analysis software. InTransit facilitates the movement of over 100,000 truckloads per year through a network of 52 nationwide branch affiliates.
Yellow's shareholders overwhelmingly voted in favor of the Roadway acquisitions — 99% approved the transaction and 98% the name change to Yellow Roadway Corp. Roadway shareholders lagged Yellow's investors slightly, with 89% supporting the transaction. After the merger, the brands will continue to be marketed separately and the networks will operate independently. Yellow Roadway expects consolidated revenues in 2004 of $6.5 billion and earnings per share around $3.00.