[KCS]

Has anyone heard about this, is it true?

[VitoCorleone99]

For people who haven't been apprised of nature of the transaction, I'll try to clarify.

ConWay is buying CFI.

The truckload division of ConWay, based in Memphis, will cease to exist. CFI, based in Joplin, will absorb the 250 trucks and 1,000 trailers from ConWay and will operate as the new truckload division of ConWay, under CFI's management. Any members of ConWay Truckload's management team who are retained will relocate to Joplin and report to CFI's current CEO, Herb Schmidt, who will be the CEO of the new ConWay Truckload.

What this means in terms of operational changes and so forth is being discussed in another thread, but this is the transactional procedure that will take place next month.

[Orangetxguy]

Very good clarification. Now...get that company "MOBBED UP" ,and increase the revenues!!! :twisted:

[VitoCorleone99]

I hope those ConWay drivers are good earners. :lol:

[Elmdor]

ConWay is buying CFI.

So they why does it sound like CFI is taking over ConWay? I thought that when a company buys out another one, the company buying the other company is the one with controlling interest. Shouldn't CFI be called ConWay and have to move to their HQ?? or does CFI just have a better rep and system then ConWay?

It sounds the same as if someone went to the store and bought something but the store gets to keep that item while you're the one who paid for it.

Either way, if I was pretty high up in the career ladder, I would be a little pissed off to find out that someone at the company that we were taking over would be replacing me.

[VitoCorleone99]

CFI is taking over ConWay Truckload, not to be confused with the larger ConWay corporation. There are three divisions of ConWay - truckload, LTL, and logistics.

ConWay made the acquisition in order to immediately increase its truckload capability, to an extent that they were not going to be able to do through organic growth. CFI and ConWay have done business together for the past nine years, so there has been a good relationship between the executives of the companies. The profits that have belonged to CFI's private ownership will now be kicked up to shareholders of CNW, just like the profits of the LTL and logistics divisions are. That's where the 'ConWay bought CFI' part comes into play. The owners of CFI, in exchange for $750 million, are turning the company into the new ConWay Truckload division of ConWay.

As for ConWay Truckload taking over the operations, I would have to ask: Should you put a fleet of 2,550 trucks, with a very profitable operation and steady customer base, out of business and hand them over to your staff who is currently running 250 trucks at break-even, or vice versa? I know that the nature of the freight being within the same corporation tended to hold ConWay Truckload's profitability down, but the fact remains that they just weren't growing. CFI has a solid history of profitability, so it's a pretty low-risk move to leave the folks in Joplin in charge. It becomes even more logical when you consider that any imbalance in CFI's current freight base can now be evened out by using Menlo's expenditures to fill the backhaul lanes.

I'm not a part of the staff making those decisions, but it seems like a pretty reasonable approach to me.

[Doktari]

Originally Posted by Elmdor

So they why does it sound like CFI is taking over ConWay? I thought that when a company buys out another one, the company buying the other company is the one with controlling interest. Shouldn't CFI be called ConWay and have to move to their HQ?? or does CFI just have a better rep and system then ConWay?

It sounds the same as if someone went to the store and bought something but the store gets to keep that item while you're the one who paid for it.

Either way, if I was pretty high up in the career ladder, I would be a little pissed off to find out that someone at the company that we were taking over would be replacing me.

Many times when a company is purchased, the acquiring company keeps the original name of the company they just purchased. If the company being purchased has a good name and reputation (such as CFI) then it probably makes sence to keep "that division" under the CFI name. There will still be ConWay and CFI trucks rolling around but the CFI trucks (and old ConWay truckload trucks/trailers) will all operate under CFI.

CFI is known as a "truckload" company and ConWay is known as an "LTL" company. The clearcut distinction will prove less confusing to ConWay/CFI customers. But, the partent company will still be ConWay.

[VitoCorleone99]

Originally Posted by Doktari

...CFI is known as a "truckload" company and ConWay is known as an "LTL" company. The clearcut distinction will prove less confusing to ConWay/CFI customers. But, the partent company will still be ConWay.

We've been led to believe that the day will come when we're known as ConWay Truckload but, for the reasons you've listed, I don't think they're in any hurry to make that change.

[greg3564]

Originally Posted by VitoCorleone99

We've been led to believe that the day will come when we're known as ConWay Truckload but, for the reasons you've listed, I don't think they're in any hurry to make that change.

I'm sure all the new trucks will come in re-branded. They they will start placing those big stickers of the new name over the CFI logo on the trucks.

I wonder if they will switch to white trucks. I'm sure they will since their colors are white and blue.

Originally Posted by greg3564

I'm sure all the new trucks will come in re-branded. They they will start placing those big stickers of the new name over the CFI logo on the trucks.

I wonder if they will switch to white trucks. I'm sure they will since their colors are white and blue.

Well, Covenant bought out Star in Nashville but Star is still operating as Star and using star trucks and trailers, they are just owned by Covenant to increase capacity, I'm sure this will be the same, I dont think you will see different trucks or colors or much difference if any in logos especialy since it sounds as if CFI management is going to be running the truckload show anyway, I would be way more than surprised if you stop seeing those red racer KW's running everywhere that has a road just like they always have, they will just be owned by a different company