Velocity Express to Acquire CD&L for $3 a Share

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ackage-delivery company Velocity Express said Wednesday it has reached agreement to acquire CD&L Inc., also a package-delivery firm, for $3 a share.

Velocity said the acquisition will give the company more than $450 million in annual revenue and 5,500 independent contractor drivers, operating from 150 locations across the United States and Canada.

CD&L’s stock has only topped $3 once this year, closing at $3.11 on Feb. 27, according to Bloomberg. Shares closed at $2.26 on the American Stock Exchange Monday.

"This transaction makes enormous economic and operating sense, and will enable us to fully capitalize on the many capabilities of both companies,” said Vincent Wasik, Velocity’s chairman and chief executive officer.

“Our vision is to double the size of the company within the next few years,” he said in a statement.

CD&L President Bill Brannan and other key executives will be joining Velocity in executive positions, the two said.

Velocity Express is ranked No. 70 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. CD&L is ranked No. 95.