Two Major Carriers Announce Merger
Among the giants in the trucking industry, Swift Transportation and Knight Transportation are two of the most well-known and well-respected companies. Ranking at number 4 and 24 respectively in the CCJ Top 250, these carriers have consistently led the way in the area of freight transportation. This makes it all the more interesting that a merger between the two has recently been announced.
This all-stock merger was approved by the boards of both carriers. The companies will be known as Knight-Swift Transportation Holdings Inc. following the merger, and trade will be conducted on the New York Stock Exchange under the ticker symbol “KNX.”
As of last week, Knight was trading at over $30 a share and Swift over $20.
Current shareholders of Swift will own over half the company while Knight shareholders will own just under half (54 and 46 percent respectively). The merger agreement states that after things are settled, one class of shares will exist with equal voting power for each share.
Swift Chairman Richard Dozer said: “Indeed, by coming together under common ownership, the companies will be able to capitalize on economies of scale to achieve substantial synergies. This is an exciting chapter in the Swift story and everyone who is a part of it should be both proud of what we bring to the table and excited about what lies ahead. I am confident in this new team, in the new structure and in the future of Swift in the industry.”
Knight CEO Kevin Knight said: “Under this ownership structure, we will be able to operate our distinct brands independently with experienced leadership in place. We look forward to learning from each other’s best practices as we seek to be the most efficient company in the industry. We are dedicated to a seamless transition and ensuring continuity for our customers and professional driving associates.”