Roadway Buys Arnold Industries for $475 Million

Roadway Corp. (ROAD), parent of the Roadway Express trucking operation, said Wednesday it will pay $475 million for the jointly owned New Penn Motor Express and Arnold Transportation trucking firms.

Roadway is ranked No. 7 in the 2000-2001 Transport Topics 100, while Arnold Industries, parent of the two companies, is ranked No. 35.

A joint press release said that the boards of directors of both companies have approved the transaction, which also requires the approval of regulators and of Arnold Industries’ shareholders.

Company Chairman and Chief Executive Officer E.H. Arnold said he would vote his shares, amounting to 16% of the company, in favor of the acquisition, according to Bloomberg.

The deal should close by the end of the year, the press release said.

In addition, an agreement with the management team at Arnold Logistics, a division of Arnold Transportation, and with E. H. Arnold, grants the team the exclusive right to purchase Arnold's logistics operations for $105 million in cash from Roadway after the acquisition of Arnold Industries is completed.

Click here for the full press release.)

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