XPO Logistics Inc. is buying Con-Way Inc. in a deal that will expand the reach of both of the transportation and logistics companies.
The companies announced the deal Wednesday, which is valued at $2.72 billion, or $3 billion including $290 million in debt.
XPO will launch a tender offer for Con-Way's shares at $47.60 per share. That represents a 32 percent premium to its closing price on Tuesday. Following a successful tender offer, Con-way, based in Ann Arbor, Michigan, will merge with a subsidiary of XPO, becoming a wholly owned subsidiary of XPO, Greenwich, Connecticut.
The deal is expected to substantially add to XPO's earnings in the first 12 months
The boards of both companies have approved the deal, and it is expected to close in October.