XPO Logistics to buy U.S. trucker Con-way in $3 billion deal

(Reuters) - XPO Logistics Inc (XPO.N) said it would buy trucking and logistics company Con-way Inc (CNW.N) for $3 billion (2 billion pounds), including debt, making it the second largest provider of less-than-truckload services in North America.

Con-way's shares jumped 33 percent to $47.20 in after market trading on Wednesday, just shy of XPO's offer of $47.60 per share in cash. XPO's shares were unchanged at $33.99.

XPO, which acts as a broker between shippers and freight companies, is benefiting from a rise in the number of trucks available to transport goods, especially given widespread bottlenecks on rail networks.

The deal is the latest in a rapidly consolidating logistics industry, with XPO at the forefront.

The company in April bought France's Norbert Dentressangle SA (GNDP.PA) for $3.53 billion, including debt, to make it one of the world's top 10 logistics companies.

A week later it bought U.S.-based Bridge Terminal Transport for $100 million to almost triple its drayage capacity, the ability to transport goods over short distances.

Reuters reported in May that XPO would raise $3.26 billion, partly to fund acquisitions.

United Parcel Service Inc (UPS.N) said in July it would buy Coyote Logistics from private equity firm Warburg Pincus for $1.8 billion to expand its full-truckload services.

XPO has grown to over $3 billion in market capitalization from $173 million in 2011, as it sought to be a one-stop shop in U.S. transportation logistics, largely through acquisitions.

The deal value includes Con-way's net debt of $290 million.

Greenwich, Connecticut-based XPO said on Wednesday that it expects the Con-way acquisition to substantially add to earnings in the first 12 months. The deal is expected to close in October.

J.P. Morgan and Morgan Stanley are XPO's financial advisers and Wachtell, Lipton, Rosen & Katz its legal adviser. Con-way's financial adviser is Citigroup and Sidley Austin LLP its legal adviser.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)