GREENWICH, CT.–Supply chain services provider XPO Logistics has agreed to purchase the trucking company Con-Way Inc. for approximately US$3 billion, making it the second largest less-than-truckload (LTL) provider in North America.

If accepted by Con-way stockholders, XPO expects the transaction will expand its global contract logistics platform and allow it to capitalize from the combination with Con-way’s managed transportation, truckload and freight brokerage businesses.

The boards of directors of XPO and Con-way have unanimously approved the deal.

Headquartered in Ann Arbor, MI, Con-way has network of 582 locations and approximately 30,000 employees serving over 36,000 customers. All of the acquired operations; Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal; will be rebranded as XPO Logistics.

Under the terms of the agreement, XPO will launch an offer for all of Con-way’s outstanding shares at a cash price of US$47.60 per share. This is a premium of approximately 31.6 percent compared to the closing price of Con-way common stock on Sept. 8.

The transaction is expected to close next month.

Bradley Jacobs, chairman and chief executive of XPO Logistics, will retain these positions and lead the combined company.

Douglas Stotlar, Con-way’s president and chief executive officer, will serve in a limited role as an independent advisor to the combined company through the first quarter of 2016.

“The Con-way transaction will nearly double our pro-forma full year EBITDA (earnings before interest, taxes, depreciation and amortization) to approximately US$1.1 billion and increase our revenue to US$15 billion upon closing,” said Jacobs. “We’ll immediately begin executing our plan to improve the operating profit of the acquired operations by US$170 million to US$210 million over the next two years. We’ll raise our year-end 2015 target run rates for revenue and EBITDA, and issue new long-term targets, when we close.”

Between the recent acquisition of France’s Norbert Dentressangle, and the planned acquisition of Con-way, XPO said it will have significantly more ground transportation capacity to serve customers in Europe and North America..

The combination will grow XPO’s global ground transportation network to approximately 19,000 owned tractors and 46,000 owned trailers, 10,000 trucks contracted through independent owner operators, and access to more than 50,000 independent carriers.

In North America, XPO will have approximately 11,000 owned tractors and 33,000 owned trailers, 6,000 trucks contracted through independent owner operators, and access to more than 38,000 independent carriers.

The company will have combined scale of approximately 84,000 employees at 1,469 locations in 32 countries.