Roadway Corp (US) acquires next-day delivery service
Roadway Corp. buy Arnold Industries
Roadway Corp. is buying Arnold Industries Inc. for $21.75 per share in an all-cash deal that will add next-day delivery service to Roadway’s existing freight operations. (8/24/2001)
Roadway is offering $21.75 in cash for each Arnold share. It has agreed to sell Arnold’s logistics business to Edward Arnold, the company’s chairman, for $105 million, making the net cost of the purchase $475 million. The $21.75 offer amounts to a premium of 4.8% to Arnold’s closing share price on Tuesday. The deal is expected to close by the end of the year and will immediately add to Roadway’s earnings.
Roadway is the parent company of Roadway Express, which offers truckload and less-than-truckload freight services throughout North America. In addition to the logistics business, Arnold owns the truckload freight business Arnold Transportation Services and New Penn Motor Express, a next-day less-than-truckload carrier.
