News Media: Gary Frantz 1+ 650-378-5335
Con-way Sells Expedited Transportation Unit to Panther
SAN MATEO, CA - July 24, 2006
Con-way Inc. (NYSE: CNW) announced today it had executed an agreement with Panther Expedited Services, Inc. for Panther to purchase the expedited freight transportation business of Con-way Expedite & Brokerage.
Privately-held Panther is a best-in-class provider of critical shipment delivery services. Its purchase of Con-way’s expedite division solidifies Panther as the largest independent expedite transportation service company in North America.
For Con-way, the sale of the division marks the latest move in a corporate strategy to focus on core business lines. “We intend to grow and develop strategic opportunities in those markets where we already have a large presence, substantial expertise and momentum,” commented Douglas W. Stotlar, Con-way president and CEO.
“We’re going to invest in LTL and truckload freight transportation and global contract logistics,” Stotlar added. “We believe these markets present the best prospects for material growth in long-term revenues and profits, and increased shareholder returns.”
For Panther, the acquisition complements its core business, expanding its network of dedicated expedite service contractors to a total of nearly 1,900 cargo vans, straight trucks and tractor-trailers in North America, while increasing its account base with Con-way Expedite’s customer list. As part of the transaction Con-way has executed a non-compete agreement with Panther and has agreed to exit the expedite market immediately.
The two companies are working together to ensure a smooth and effective transition of Con-way Expedite’s current operations, customers and owner-operator fleet to Panther.
Con-way Brokerage, a separate operating division involved in asset and non-asset based truckload sales, will remain with Con-way as part of the Con-way Transportation reporting segment.
Proceeds from the sale will be between $7 million and $8 million, dependent on certain incentive provisions. The company expects the transaction to be concluded and reported during the third quarter.
The sale of the division is not expected to have a material effect on Con-way’s revenues.
About Con-way -- Con-way Inc. (NYSE:CNW) is a $ 4.2 billion freight transportation and logistics company with businesses in less-than-truckload and full truckload freight services, truckload brokerage, contract logistics, warehousing, supply chain management and trailer manufacturing. The company and its subsidiaries operate across North America and in 20 countries. More information about Con-way, its operations and services can be found on the Web at www.con-way.com
###
