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On the acquisition trail

Jan. 12, 2004
On the acquisition trail Consolidation continues within the logistics community. From small combinations to Yellow's acquisition of Roadway Express, carriers
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.

January, 2004

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