In an initiative designed to advance its strategic goal of providing complete coverage throughout North America, Saia Inc., a provider of less-than-truckload (LTL) services, said today it has acquired The Connection Company, a Columbus, Ohio-based LTL carrier, for $17.5 million.

The Connection Company was founded in 1983 and is comprised of 20 terminal locations and 800 employees that provide direct coverage throughout Indiana, Kentucky, Michigan and Ohio. Connection has had a strategic partnership with Saia since February of this year. With this acquisition Saia will now serve 34 states with 139 terminals.

“The four states The Connection serves are all complimentary to Saia’s existing geographies, resulting in no overlap or redundant terminal operations,” said Saia president Rick O’Dell in a conference call.

O’Dell also said that that the acquisition is expected to be completed by February 2007, with synergy lanes between the companies ready for operation in March 2007.

Bert Trucksess, Saia chairman and CEO, added that Saia’s management team has a demonstrated record of successfully integrating new geographies by quickly merging operations to enhance service, improve operational efficiency, and recognize synergy value. Trucksess added that this initiative will be concurrent with Saia’s priority to build density and improve profitability in its existing geographies.

“Geographic expansion is an integral part of our business strategy,” said O’Dell. “The four states The Connection serves are all complimentary to Saia’s existing [service areas]…and will allow us to leverage some recent capacity investments we made in Chicago and Nashville.”

O’Dell likened this deal to Saia’s acquisition of LTL carrier Clarke Brothers in February 2004, which added operations in Chicago, Minneapolis, St. Louis and Kansas City to the Saia portfolio.

The primary benefit of this acquisition for Saia, in terms of growth, according to O’Dell is providing customers with new lane opportunities with seamless service and improved transit times.