ROADWAY TO BUY ARNOLD INDUSTRIES
Roadway Corp., in an effort to enter the next-day ground market, agreed to buy transportation and logistics holding company, Arnold Industries and its subsidiaries New Penn Motor Express and Arnold Transportation Services.
In addition, Roadway has agreed to sell Arnold Logistics, a unit of Arnold Transportation Services, back to the unit's management team and E.H. Arnold, president and chief executive officer of Arnold Industries, for $105 million.
Roadway, the Akron, Ohio-based truckload and less-than-truckload service provider, said the transactions will be about $475 million, net the anticipated sale of the logistics operations.
New Penn Motor Express, based in Lebanon, Pa., provides next-day LTL service in 12 Northeast states and parts of the Southeast, Midwest and Canada, through relationships with other regional carriers. The unit's 2000 revenues were $236 million.
Kenneth F. Leedy, president of New Penn, will become president of the newly formed Next-day Group at Roadway. Stephen M. O'Kane, New Penn's executive vice president, will become president of New Penn Motor Express.
Arnold Transportation Services, based in Jacksonville, Fla., provides irregular route and dedicated truckload service in the Northeast, Southeast, Midwest and Southwest. Michael S. Walters will continue as president and CEO of the unit, which earned $179 million in revenue in 2000.
Arnold Logistics provides distribution, order fulfillment, direct mail and printing, call center management, reverse logistics and contract packaging services. Its consolidated revenues totaled $462 million in 2000.