On Monday, Knight-Swift Transportation Holdings Inc., one of the country’s largest freight transportation companies, announced it had agreed to acquire Chattanooga, Tenn.-based U.S. Xpress Enterprises Inc., for approximately $808 million, or about $6.15 per share.
Knight-Swift said it expected its revenue base to grow by nearly 30 percent. The deal will also see U.S. Xpress stockholders receiving a 310 percent premium over the company’s closing stock price as of March 20. U.S. Xpress Special Committee said a compelling cash consideration will maximize value for U.S. Xpress stockholders. The U.S. Xpress brand and operations will continue separate from Knight-Swift.
“The opportunity to add one of the largest and most well-known brands in our industry, with significant opportunity to improve earnings, gain customers and reach more professional drivers, was very compelling to us,” Knight-Swift CEO, Dave Jackson, said. “We expect to apply the same playbook that proved successful in the Knight-Swift merger as we share best practices, improve operations and work together to help U.S. Xpress become the best that it can be.”
In 2022, U.S. Xpress generated approximately $2.2 billion in total operating revenue through a network of 14 facilities operating 7,200 tractors and 14,400 trailers across the country. The company employs more than 7,900 drivers, 1,0000 independent contractors, 300 maintenance technicians and 2,200 non-driver employees.
“We are very pleased to deliver to our stockholders the opportunity for near-term liquidity at a significant premium,” U.S. Xpress CEO, Eric Fuller, said. “Additionally, joining the Knight-Swift team is an exciting opportunity for our people, our customers, and the Chattanooga and other communities we call home. The increased scale, operating expertise and resources of the combined entity will allow U.S. Xpress to pursue new levels of service and efficiency. We’re delighted that U.S. Xpress will continue to operate as an independent brand and will do so with the support and partnership of one of North America’s strongest transportation companies.”