XPO Inc., a less-than-truckload carrier, has agreed to acquire 26 owned terminals and two leased properties from Yellow Corp. for $870 million. This move comes as part of the managed sale of Yellow’s assets during its bankruptcy proceedings. XPO’s bid emerged as one of the largest in the auction, with a total of 128 out of Yellow’s 169 owned properties sold to various buyers for nearly $1.9 billion. Estes Express Lines had initially submitted a stalking horse bid of $1.525 billion for Yellow’s terminals, and while it did not secure any in the initial sale, it remains a major player.

Other notable winners in the auction include Saia Motor Freight Line and real estate investor Ramar Land Corp. Saia agreed to pay $235.7 million for 17 facilities, with plans to close the sale in the first quarter of 2024. However, Old Dominion Freight Lines and FedEx Freight did not secure any terminals in the auction. Next Century Logistics, led by Jack Cooper Transport Executive Chair Sarah Amico, submitted a late bid worth $3.1 billion, aiming to reanimate Yellow with unionized employees.

A hearing to approve the sale of the terminals is scheduled for December 12, and 46 owned properties remain to be sold in the ongoing auction. The terminals, considered to be in prime locations, were highly sought after by both LTL carriers and real estate investors. The auction’s outcome reflects a trend where the industry remains capacity- and price-disciplined, with the majority of properties sold to incumbent LTL carriers. The leased terminal auction is expected to continue in the coming weeks.

Inspired by: https://www.ttnews.com/articles/xpo-yellow-terminal-auction