Freight Operator XPO Wins Bankruptcy Court Approval To Acquire 28 Yellow Service Centers

Freight transportation company XPO Inc XPO said the U.S. Bankruptcy Court for the District of Delaware has approved the company's offer to acquire 28 service center locations previously operated by Yellow Corporation.

XPO will acquire 26 service centers and assume existing leases for the other two locations. The transaction is expected to close by the end of 2023.

Related: Transportation & Logistics Company XPO Wins Bid To Acquire 28 Service Centers Of Bankrupt Yellow Corp., Sees EPS Accretion

"This acquisition of real estate is a once-in-a-generation opportunity to increase capacity in critical, growing freight markets, create more jobs and serve our customers even more effectively," said CEO Mario Harik.

"We look forward to integrating these prime sites to enhance network efficiency and drive our next decade of growth."

The acquisition is expected to boost XPO's national network with prime real estate in fast-growing freight markets, including Atlanta, Brooklyn, Columbus, Greensboro, Houston, Indianapolis, Las Vegas, Minneapolis, Nashville, Portland and Central Pennsylvania.

Trucking company Yellow Corp filed for bankruptcy in August under Chapter 11 of the U.S. Bankruptcy Code.

Price Action: XPO shares closed higher by 3.12% at $84.71 on Tuesday.