USF Buys Transport Corp.

USFreightways Corp. announced last week that it will acquire Transport Corp. of America for about $150 million in stock, a deal that will make USFreightways one of the nation’s largest truckload carriers.

Over the past two years, USFreightways has moved aggressively to implement a strategy of offering one-stop shopping for freight services. The company expanded its primary business of providing regional less-than-truckload services by acquiring a domestic and international freight forwarder, a reverse logistics firm and a mid-size regional truckload carrier. Its logistics and distribution services have been expanded to capitalize on electronic commerce trends.

While LTL and truckload services have developed into distinct segments of the industry over the past two decades, some industry analysts say more mergers like this one may be in the offing as trucking companies scramble to offer a more complete menu of transportation services.

TCA “catapults us into a leading position in the truckload market,” USFreightways Chairman J.C. “Cam” Carruth said in a conference call with financial analysts Jan. 18. “It is a good company. It is very well-managed. They have good people and a good track record.”

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