Tuesday, July 8, 2003 | 9:50 a.m.
OVERLAND PARK, Kan. -- Trucking giant Yellow Corp. said today it agreed to buy rival Roadway Corp. for $966 million in cash and stock, a huge premium over Roadway's recent market valuation.
Under the terms of the deal, Overland Park, Kan.-based Yellow will also assume $140 million in Roadway debt and Roadway will be positioned as a unit within the newly named Yellow-Roadway Corp.
Both companies are less-than-truckload carriers, meaning they consolidate freight from multiple customers.
"This strategic combination brings the strengths of Yellow and Roadway together to capture significant synergies and growth opportunities," Yellow CEO Bill Zollars said in a statement. Zollars will be chairman, president and CEO of the combined company.
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