COVENANT TRANSPORT ACQUIRES CON-WAY TRUCKLOAD SERVICES

COVENANT TRANSPORT ACQUIRES CON-WAY TRUCKLOAD SERVICES

   Covenant Transport Inc. has acquired certain assets of Con-Way Truckload Services Inc., the Fort Worth, Texas company owned by Con-Way Transportation Services Inc. Terms were not disclosed.

   Covenant acquired CWT's customer list and driver files, plus about 200 trailers and 125 tractors, or about one-third of CWT's power units.. Con-Way earned about $80 million in over-the-road trucking revenue last year.

   “The acquisition of CWT is similar to Covenant's acquisition of ATW last fall,” said David R. Parker, chairman, president and chief executive officer of Covenant. “In both cases, Covenant was able to add business from several high-quality shippers and gain access to quality drivers and owner-operators without adding a commensurate number of power units.

   “Approximately 80 percent of CWT's revenue is concentrated in 10 accounts, only one of which is a current Covenant customer,” he said. “As part of the transaction, Covenant received long-term commitments for about $45 million in annual dedicated truckload shipments.”

   Covenant reported revenue of more than $550 million last year and said it has experienced growth of more than 20 percent per year over the past 14 years.