(Reuters) - XPO Logistics Inc (N:XPO) said it would buy trucking and logistics company Con-way Inc (N:CNW) 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 (PA:GNDP) 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 (N:UPS) 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 (NYSE:MS) are XPO's financial advisers and Wachtell, Lipton, Rosen & Katz its legal adviser. Con-way's financial adviser is Citigroup (NYSE:C) and Sidley Austin LLP its legal adviser.