Knight-Swift Completes Acquisition of U.S. Xpress
Knight-Swift boosts assets with the $808m acquisition of U.S. Xpress, poised to reshape the logistics industry landscape and market dynamics.
The Knight-Swift's acquisition of U.S. Xpress has officially closed, marking the end of the latter's five-year stint as a publicly-traded company. The $808 million deal, which was effectively sealed as U.S. Xpress delisted its stock from the NYSE, is set to significantly boost Knight-Swift's assets, adding approximately $2.2 billion in revenue and around 7,200 tractors and 14,400 trailers. The truckload carrier Knight-Swift now anticipates an annual run rate close to $10 billion post-acquisition.
However, despite the strategic fit and expected bolstering of Knight-Swift's capacity and revenue, the market reaction has been subdued, with the company's stock price showing a marginal decline since the announcement of the deal. This consolidation could influence industry dynamics, potentially triggering similar mergers or acquisitions as competitors adjust to the new landscape.
Source: Freight Waves