
XPO Logistics has announced the sale of its Con-way truckload division, which was acquired when the company purchased Con-way Inc. in 2015. In a press release, the company announced that they are selling the truckload business to Canadian trucking company TransForce Inc. for $558 million in cash.
The company says the proceeds will go towards paying off some of their $5.1 billion of debt, which was primarily used to acquire other companies.
XPO says the truckload division represents a small segment of the Con-way purchase, and they will retain and continue to implement Con-way’s less-than-truckload division into their current business.
The Wall Street Journal reported that “about 3,000 tractors, 7,500 trailers and 29 locations” will be sold to TransForce in the deal. Transforce is Canada’s largest trucking firm.
XPO CEO Bradley Jacobs says while the truckload division was a good business, it’s not a sector the company wants to focus on. “Even though it’s a good business, it’s only the 19th largest trucking company in the U.S. We’re No. 1, or close to No. 1, in all of our major businesses,” he said.