Overnite Transportation, one of the nation's largest multiregional less-than-truckload carriers, intends to expand its service area significantly through the acquisition of Motor Cargo, a publicly held carrier based in Salt Lake City that serves 10 western states. Richmond, Va.-based Overnite, a subsidiary of Union Pacific Corp., provides service in 32 states east of the Rocky Mountains. Overnite says it does not plan to merge Motor Cargo into its operations. Instead, both carriers will operate separately as subsidiaries of Overnite Holding, Overnite's parent.

In a prepared statement, Leo Suggs, chairman and CEO of Overnite, said, "This acquisition will enable Overnite to accelerate our entrance into the attractive and growing western regional market. The two carriers expect to complete the transaction, valued at about $80 million, by the year's end.

The acquisition continues a trend by some of the largest regional carriers to build national networks. Last year, for instance, Federal Express acquired American Freightways, which provides service in most of the eastern United States and grouped it with Viking Freight, a western U.S. regional LTL carrier, into FedEx Freight. Likewise, USFreightways and Con-Way Transportation have well-established national networks of regional LTL carriers. In a letter to customers, John Fain, Overnite's senior vice president of marketing and sales, confirmed that the acquisition of Motor Cargo "fulfills our strategy to be a nationwide regional, interregional, and long-haul carrier."