May 31, 2005 9:15 AM, EDT

Forward Air to Buy U.S. Xpress' Air Unit for $12.75 Mln.

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ess-than-truckload carrier Forward Air Corp. said Tuesday it signed an agreement to buy the airport-to-airport operations of truckload carrier U.S. Xpress Enterprises Inc. for $12.75 million.

The companies said in separate statements that as part of the agreement U.S. Xpress will exit the airport-to-airport business.

U.S. Xpress operated in that segment through its Xpress Global Systems unit. The company said that those operations generated about 5% of its reported $1.1 billion 2004 revenue.

Forward Air posted record operating revenue of $69.5 million in the first quarter of this year.

orward Air Corp. is ranked No. 72 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. U.S. Xpress is ranked No. 22.