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The trucking sector is being watched on Tuesday after a major deal was announced with Knight-Swift Transportation (NYSE:KNX) buy US Xpress (USX) for a hefty premium. The $808 million deal will be considered one of the biggest truck carrier’s historical sales at closing.
Knight-Swift’s (KNX) consolidated revenue run rate is expected to hit $10 billion after the deal closes, while the truck fleet will have around 25k tractors and 93k trailers. USX trading is expected to be added to Knight-Swift’s (KNX) adjusted earnings per share starting in 2024. The company is also targeting an adjusted operating ratio at 80s highs by 2026, generating a return on investment for the ages. youth for the US Xpress incorporated business unit. Additionally, KNX management expects the U.S. Xpress truck business to perform similarly to other Knight-Swift truck businesses over time based on the company’s history of performance and success. Knight-Swift with the acquisition.
Shares of US Xpress (USX) rose 294% to $5.91 from the agreed-upon price of $6.15 at the opening of the trade. Knight-Swift (KNW) jumped 6.99%. Other notable trucking and logistics companies include the Gold Group (YELL) +6.28%BET (THE BEST) +5.88%Radiant Logistics (RLGT) +3.65%GXO Logistics (GXO) +3.44%saia (SAIA) +2.68%Werner Enterprise (WERN) +2.55%Old Dominion Freight Line (ODFL) +1.75%JB Hunt Transport (JBHT) +1.71%and Daseke (DSKE) +1.70%. Another interesting dynamic is Proterra (PTRA) +9.20% and TuSimple (TSP) 4.90% higher than from the electric vehicle sector.
Read more about super merger of the trucking sector.
