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XPO | Con-way being sold.

It says on XPO's site that Menlo, Con-way Freight and the Truckload divisions will all be rebranded and operate as XPO Logistics.
 
  • • Bradley Jacobs, chairman and chief executive of XPO Logistics, will retain these positions and lead the combined company. Douglas Stotlar, Con-way's president and chief executive officer, will serve in a limited role as an independent advisor to the combined company through the first quarter of 2016.

Dougie gone ? Some of you will rejoice just to know this.
 
Jacobs continued, "The Con-way transaction will nearly double our pro-forma full year EBITDA to approximately $1.1 billion and increase our revenue to $15 billion upon closing. We'll immediately begin executing our plan to improve the operating profit of the acquired operations by $170 million to $210 million over the next two years. We'll raise our year-end 2015 target run rates for revenue and EBITDA, and issue new long-term targets, when we close."

The " plan " will begin immediately. That's reassuring.
 
Within 12 months of closing the acquisition, the company expects to realize cost synergies through the following actions:

  • Improving purchasing and supplier management related to facility operations, equipment, fuel, professional services, maintenance, supplies and marketing;
  • Leveraging its combined technology infrastructure to reduce Con-way's annual technology spend of $227 million, which is largely outsourced;
  • Eliminating duplicative back office and public company costs; and
  • Expanding its freight brokerage platform with the integration of Con-way's $200 million brokerage business, to share capacity and data through XPO's proprietary Freight Optimizer technology.
In the second year, the company expects additional profit improvements by:

  • Reducing its $3.6 billion combined spend on purchased transportation;
  • Using the larger flow of data from its combined $2.7 billion of freight under management to identify carriers, assign loads and fill backhauls more efficiently; and
  • Utilizing its extensive intermodal network to improve LTL line-haul efficiency.
This is a plan. They have been working on this for a while. Greg and his boys knew what was up.
 
wongway said:
Conway Driver's , bend over and get ready to take it , just like what YRCW did to Holland -Reddway -New Penn - Roadway Driver's after the buy out !!! $$$$ givebacks & vacation takeaways & etc benefits will be history !!!
Click to expand...


Lucky for us they already took all the good stuff. If they take anymore guys will just go work for someone else. See summer of 2014 if you need any examples of that.
 
Conference Call

XPO Logistics will hold a conference call to discuss the proposed transaction on Thursday, September 10, 2015, at 8:30 a.m. Eastern Time. Participants can call toll-free (from U.S./Canada) 1-800-708-4539; international callers dial +1-847-619-6396. A live webcast of the conference will be available on the investor relations area of the company's website, www.xpo.com/investors. The conference will be archived until October 10, 2015. To access the replay by phone, call toll-free (from U.S./Canada) 1-888-843-7419; international callers dial +1-630-652-3042. Use participant passcode 40691451.

We may want to hear this.
 
highspeeds said:
Within 12 months of closing the acquisition, the company expects to realize cost synergies through the following actions:

  • Improving purchasing and supplier management related to facility operations, equipment, fuel, professional services, maintenance, supplies and marketing;
  • Leveraging its combined technology infrastructure to reduce Con-way's annual technology spend of $227 million, which is largely outsourced;
  • Eliminating duplicative back office and public company costs; and
  • Expanding its freight brokerage platform with the integration of Con-way's $200 million brokerage business, to share capacity and data through XPO's proprietary Freight Optimizer technology.
In the second year, the company expects additional profit improvements by:

  • Reducing its $3.6 billion combined spend on purchased transportation;
  • Using the larger flow of data from its combined $2.7 billion of freight under management to identify carriers, assign loads and fill backhauls more efficiently; and
  • Utilizing its extensive intermodal network to improve LTL line-haul efficiency.
This is a plan. They have been working on this for a while. Greg and his boys knew what was up.
Click to expand...

There it is!
 
snaildriver said:
There it is!
Click to expand...

First point is simple. Better purchasing power. Okay. Doesn't hurt.

Second is use their technology. We are using stone and chisel. Don't hurt.

Third is close Con-way corporate headquarters. Don't hurt drivers. And they all wealthy in the palace. Will have their friends get them another sweet gig.

Fourth is a 3PL operating like a 3PL. Still no drama.

Second year. First point. Utilize your massive fleet instead of someone else's. Okay with that too.

Second. Push efficiency. Where have we heard that before ? No drama.

Third. Eliminate unneeded runs. Generate needed runs. In the most cost effective way possible. Still not upset.


Over all. This really just makes sense. What bothers me is pay, benefits, environment. How will those change ?
 
The people on top will jump out the window and pull the chords on their golden parachutes. The rest will will get pushed out the window with none. For us drivers, who knows. Could be good, could be bad. I read something in there about XPO wanting to reduce the amount of purchase transport they use. Hauling more freight on our sets with us driving can't be bad. I am nervous about the whole thing all the same but will remain cautiously optimistic. Whoever they get to run our outfit could not be worse than the yahoos in charge up to this point.
 
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