A Greenwich, Connecticut-based company is set to buy freight company Yellow Corp.’s real estate assets for $870 million.
XPO Inc. emerged as the winning bidder of the bankrupt Yellow Corp.’s real estate selloff of 26 owned properties and two leased properties, Nashville Business Journal reported.
The deal is awaiting approval from a Delaware bankruptcy court.
Yellow Corp., previously headquartered in the Kansas City area before relocating to Nashville in the past year, filed for Chapter 11 in August. This move came after the company ceased all operations on July 30, leading to a bankruptcy filing for the less-than-truckload carrier.
XPO’s winning bid includes the acquisition of Yellow properties in St. Louis, Missouri; Columbia, Missouri; and Danville, Illinois. While specific bid prices for individual properties are not disclosed in the documents, it is noted that XPO’s offer was selected from a total of 20 companies.
As part of the successful bid, XPO also secured the right to designate contracts related to service centers for a 45-day period in consultation with Yellow.
The asset sale comes after Yellow Corp., operating for nearly a century, entered Chapter 11 bankruptcy following extensive negotiations with the Teamsters union. Last year, XPO Logistics sold a suburban industrial building in Des Plaines in a $50 million sale-leaseback deal with Realterm Logistics.
Realterm, a real estate firm that focuses on logistics for the transportation industry, bought the 113,243-square-foot property at 401 West Touhy Avenue and leased it to XPO for 15 years, according to Cook County property records.
— Ted Glanzer