Roadway To Buy Arnold Industries For $475 Million

By BridgeNews Roadway Corp., Akron, Ohio, agreed to acquire Lebanon, Pa.-based Arnold Industries Inc. for $21.75 per share, or $475 million, in cash. Under the terms, Arnold and its New Penn Motor Express and Arnold Transportation Services units will become subsidiaries of Roadway. Roadway also agreed to sell Arnold's logistics operations to a management team led by Chairman E. H. Arnold, for $105 million in cash, after the acquisition. Credit Suisse First Boston agreed to provide Roadway up to $700 million to finance the acquisition. The purchase, to be completed before the year-end, is expected to add to Roadway's earnings. Roadway Express, New Penn Motor Express, and Arnold Transportation Services will operate independently under their respective brand names. Each company's management team and headquarters location will remain the same.

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