Covenant Transport Buys Con-Way’s Truckload Business
Covenant Transport moved boldly Aug. 22 to increase its revenue, profits and market share by purchasing a substantial portion of what was Con-Way Transportation Services’ truckload division.
One source, who did not want to be identified, said Covenant paid Con-Way $8 million in cash, and labeled the transaction as “very astute” for Covenant.
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Con-Way’s clutter could prove to be Covenant’s prize. A top executive with Covenant, based in Chattanooga, Tenn., said the beauty of the deal lies in buying access to the shippers that used Con-Way’s truckload business, but only some of the carrier’s assets.
Neither party would release the price of the transaction, although Covenant may have to publish it in the fall as part of its third-quarter earnings report.
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