{"id":21048,"date":"2023-12-06T01:10:49","date_gmt":"2023-12-06T07:10:49","guid":{"rendered":"https:\/\/ustower.net\/?p=21048"},"modified":"2023-12-06T01:10:53","modified_gmt":"2023-12-06T07:10:53","slug":"trucking-firm-xpo-to-buy-bankrupt-yellows-service-centers-for-870-mln","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=21048","title":{"rendered":"Trucking firm XPO to buy bankrupt Yellow’s service centers for $870 mln"},"content":{"rendered":"\n

Dec 5 (Reuters) – Trucking company XPO Inc (XPO.N)<\/u><\/a> won a bid to buy 28 service centers of bankrupt Yellow Corp for $870 million in a closely watched auction of the nearly 100-year-old firm’s assets.<\/p>\n\n\n\n

XPO shares were down 3.8% in morning trade amid weakness in broader markets.<\/p>\n\n\n\n

Yellow, formerly known as YRC, filed for Chapter 11 bankruptcy protection in August after blaming<\/u><\/a> the International Brotherhood of Teamsters union for its demise.<\/p>\n\n\n\n

The company was one of the nation’s largest so-called less-than-truckload carriers in the U.S. and owned about 12,000 trucks and 35,000 trailers and its customers included Walmart (WMT.N)<\/u><\/a> and Home Depot (HD.N)<\/u><\/a>.<\/p>\n\n\n\n

XPO expects the deal, which is subject to court approval, to add to core profit in 2024 and adjusted profit per share from continuing operations from 2025, according to a filing on Tuesday.<\/p>\n\n\n\n

The deal will add “significant footprint in areas where XPO was previously capacity constrained, the path towards the company’s 2027 goals,” said Jonathan Chappell, analyst at Evercore ISI.<\/p>\n\n\n\n

The company has also entered into an $870 million credit agreement which it may use to finance a deal it said would help optimize routes for its less-than-truckload transportation in North America.<\/p>\n\n\n\n

XPO’s successful bid was part of a court-supervised auction that saw nearly two dozen companies, including Estes Express Lines and Knight-Swift Transportation Holdings (KNX.N)<\/u><\/a>, win rights to purchase Yellow’s assets for $1.88 billion, as per a court filing on Monday.<\/p>\n\n\n\n

The U.S. Bankruptcy Court in Delaware will hold a hearing on Dec. 12 to approve the bids.<\/p>\n\n\n\n

Yellow’s bankruptcy process was closely watched after its demise potentially saddled U.S. taxpayers with losses stemming from a government rescue.<\/p>\n\n\n\n

Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Dec 5 (Reuters) – Trucking company XPO Inc (XPO.N) won a bid to buy 28 service centers of bankrupt Yellow Corp for $870 million in a closely watched auction of the nearly 100-year-old firm’s assets. XPO shares were down 3.8% in morning trade amid weakness in broader markets. Yellow, formerly known as YRC, filed for Chapter 11 […]<\/p>\n","protected":false},"author":5,"featured_media":21049,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[6819,3515,24793,24790,1994,24791,24792],"class_list":["post-21048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-acquisition","tag-bankruptcy","tag-service-center","tag-transportation-company","tag-trucks","tag-xpo","tag-yellow"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/21048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21048"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/21048\/revisions"}],"predecessor-version":[{"id":21050,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/21048\/revisions\/21050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/21049"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}