Yellow Corp. offers to buy Jevic Transportation for $200 million US

OVERLAND PARK, Kan. (June 7) — Less-than-truckload giant Yellow Corp. has offered to buy Jevic Transportation for about $200 million US, including debt, a combination that would createone of North America’s largest multi-regional LTL transportation companies.

Jevic’s board of directors recommended that shareholders accept the deal, worth $14 a share. The offer, which is subject to regulatory approval, could be completed early in the third quarter of 1999.

Jevic specializes in regional and inter-regionals LTL and truckload freight in the U.S. Northeast and Upper Midwest. Jevic, based in Delanco, N.J., would become part of Yellow Corp.’s newly formed multi-regional transportation services holding company. Other regional Yellow Corp. companies include Saia, an LTL carrier serving the Southeast, WestEx, serving California and the Southwest, and Action Express, serving the Pacific Northwest and Rocky Mountain States.

Yellow Corp. said the addition of Jevic would give it revenue approaching $800 million from its regional carrier group. In 1998, Jevic reported revenue of $226.1 million and operating income of $16.7 million, for an operating ratio of 92.6.

Jevic’s regional facilities are located in the metropolitan areas of Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland, Houston, and Philadelphia.