continued to grow its trucking empire Monday, striking a definitive agreement to acquire
for $1.37 billion.
USF shareholders will get a choice between $45 cash or 0.9024 share of Yellow Roadway stock, with the final ratios being adjusted so the cash portion of the transaction comes out to $639 million. Yellow will also assume about $99 million of USF debt.
When the deal closes this summer, Yellow will have 1,000 service locations, 70,000 employees and revenue of $9 billion. The combined enterprise will offer next day, regional, national and international trucking and transportation capabilities.
Yellow, which has seen its shares double since it acquired Roadway Corp. about a year ago, expects the USF acquisition to add to its per-share earnings within 12 months of closing. Approximately $40 million of net synergies are expected within the first 12 months along with yearly synergies of $80 million after the first 12 months.
Shares of USF were recently up $8.28, or 21%, to $47.10.