California company buys CFI for $750M

Con-way Inc. (NYSE: CNW), a freight transportation and logistics company based in San Mateo, Calif., said in a news release it was attracted to CFI’s diversified revenue, operational efficiencies and growth opportunities.

More details will be released during a 10 a.m. conference call, available through a Web cast at www.con-way.com.

CFI employs more than 3,000 workers, including company drivers and independent contractors.

According to its Web site, www.cfi-us.com, privately held CFI was founded in 1951 with a single tractor and two trailers; the company now operates more than 2,600 tractors and 7,000 trailers and serves customers throughout North America. The Joplin company collaborates with Mexican carriers to provide service to Mexico and operates four terminals and drop lots throughout the United States.

The acquisition brings CFI into Con-way’s truckload division, creating a business unit with more than $500 million in annual revenues.

“We are excited to join the Con-way family of operating companies. CFI will benefit from Con-way’s infrastructure, broad service capabilities and strong brand recognition,” CFI President and CEO Herb Schmidt said in the release. “Becoming part of the Con-way organization will allow us to penetrate new markets and provide new services to our customers. In addition, Con-way and CFI share service philosophies and common values such as safety, integrity, commitment and excellence.”

About the sale, Con-way’s president and CEO Douglas W. Stotlar added, “It establishes a superior platform for growth. … This acquisition is a cornerstone of our strategic plan to grow the company, build competitive advantage and increase shareholder value.”

Shares of Con-Way Inc. closed Friday at $53.06, compared to a 52-week range of $42.09 to $57.48.