XPO, Inc acquires 28 service centers from Yellow for $870M

XPO, at auctions held on November 28, said it was selected as the successful bidder for 28 service centers of Yellow Corporation located across the United States for an aggregate purchase price of $870M. The acquired assets include the assumption of three leases and the right to designate, in consultation with Yellow, additional contracts that are related exclusively to the Acquired Assets, for a period of 45 days following the consummation of the Yellow Asset Acquisition. The Yellow asset Acquisition is intended to be consummated pursuant to Section 363 of the bankruptcy code, and remains subject to various conditions, including, among others, the entry by the bankruptcy court of a sale order and the satisfaction of certain other closing conditions, XPO added. The acquisition is expected to be accretive to adjusted EBITDA and dilutive to adjusted diluted earnings from continuing operations per share in 2024. Starting in 2025, the Yellow asset acquisition is expected to be accretive to adjusted diluted earnings from continuing operations per share. In connection with the acquisition, XPO entered into a senior secured bridge term loan credit agreement pursuant to which the company may borrow up to an aggregate amount of $870M.