USFreightways to Buy Transport Corp.

USFreightways Corp. has agreed to acquire Transport Corporation of America, a large publicly owned truckload carrier based in Minneapolis, for USFreightways stock valued at about $150 million.

TCA shareholders will receive 0.412 shares of USFreightways common stock for each share of TCA that they own. The deal will result in the issuance of about 3.4 million new shares and will be accounted for as a merger.

USFreightways stock closed Jan. 14 at $43.63 a share.

The company's chairman, J. Campbell "Cam" Carruth, said TCA will operate as a separate subsidiary under the direction of Robert Meyers, its current chief executive officer.

USFreightways is the parent of five regional less-than-truckload carriers, freight forwarder USF Worldwide and several logistics and distribution businesses.

The coompany entered the truckload segment in August 1998 with the acquisition of Glen Moore Trucking of Carlisle, Pa. Since the takeover, USF Glen Moore has bought two smaller truckload carriers.

TCA operates a tractor fleet of 1,250 company-owned and 820 owner-operators vehicles as well as 6,500 trailers. The company had revenue of $245.9 million in 1998 and acquired Robert Hanson Trucking in May 1999.