One of the USA's largest trucking companies and owner of Menlo Logistics, Con-way Inc., has entered into an agreement to acquire Contract Freighters, Inc. (CFI), a privately held North American truckload carrier based in Joplin, Mo., in a transaction valued at $750 million.

CFI operates over 2,600 tractors and more than 7,000 trailers, with more than 3,000 employees including approximately 2,500 drivers.

The acquisition will create a leading less-than-truckload (LTL), truckload (TL) and supply chain management enterprise with a broad portfolio of services in the US and Mexico.

"Acquiring CFI is a significant addition to Con-way's ability to serve the customer. It establishes a superior platform for growth, clearly differentiating Con-way as a premier provider of supply chain and freight transportation solutions," said Douglas W. Stotlar, Con-way's president and CEO. "This acquisition is a cornerstone of our strategic plan to grow the company, build competitive advantage and increase shareholder value."

The companies expect to realise a number of strategic benefits from the combination, including a diversified revenue mix. The combined truckload operations will generate approximately $500 million in truckload revenue for Con-way, enabling the company to reach a more diversified mix between LTL, TL and logistics revenues, helping to moderate the effects of cyclical swings in the business units.

The acquisition will also enhance Con-Way's Mexico presence. CFI has been present in the market for 20 years and is among the largest participants in the market for cross-border truckload freight. This will be combined with Menlo's in-country and border-based logistics operations.

In addition there will be other synergies with Menlo Logistics. Menlo manages approximately $600 million in domestic truckload transportation services, some of which is already handled by CFI.