Knight-Swift Transportation Holdings and U.S. Xpress Enterprises plan to merge in a deal worth approximately $808 million, including debt and equity.
Knight-Swift Transportation Holdings and U.S. Xpress Enterprises plan to merge in a deal worth approximately $808 million, including debt and equity. The deal would add one of the largest and most well-known brands in the industry and increase the revenue base by nearly 30% for Knight-Swift.
The deal also requires the approval of U.S. Xpress shareholders, who own about 58% of the company. The CEO and President of Knight-Swift, Eric Fuller, and the CEO and President of U.S. Xpress, Eric Peterson, will transition out of their roles along with other family members. The deal is expected to close in late Q2 or early Q3.
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Knight-Swift Transportation Holdings and U.S. Xpress Enterprises have announced a major mutually beneficial transaction with a total value of as much as $ 808 million. This solution will combine their capital, as well as all existing debt obligations of the companies. Why would such a solution be needed?
Combining the two companies will help them increase revenue by 30-35% in total, as well as raise the payback of Knight-Swift and make one more recognizable brand. Adherents of both companies can form a more massive purchasing capital.
So far, the decision has not been made definitively, and a decision is expected from the American shareholders of Xpress. It is also reported that CEO Eric Fuller (Knight-Shift) and CEO Eric Peterson (U.S.Xpress) will no longer hold their positions. The confirmation of the transaction itself and the signing of all final documents are expected in the 2nd or 3rd quarter of this year.
The main points after the signing of the deal can be noted: the growth of Knight-Swift's revenue base, the adjustment of the operating coefficient by 2026, as well as the adjustment of the return on investment. Also, with the help of additional rewards for Xpress shareholders and by reducing Knight-Swift's cash flows, it will be possible to achieve a competent asset allocation by the time the deal is signed.
The main points after the signing of the deal can be noted: the growth of Knight-Swift's revenue base, the adjustment of the operating coefficient by 2026, as well as the adjustment of the return on investment. Also, with the help of additional rewards for Xpress shareholders and by reducing Knight-Swift's cash flows, it will be possible to achieve a competent asset allocation by the time the deal is signed.