The trucking sector is on watch on Tuesday after a mega-deal was announced with Knight-Swift Transportation (NYSE:KNX) acquiring U.S. Xpress (USX) for a hefty premium. The $808M deal will go down as one of the largest truckload carrier sales in history at closing.
Knight-Swift’s (KNX) consolidated revenue run-rate is expected to approach $10B after the deal closes, while the truckload fleet will have approximately 25K tractors and 93K trailers. The USX transaction is expected to be accretive to Knight-Swift’s (KNX) adjusted earnings per share starting in 2024. The company is also targeting a high-80s adjusted operating ratio by calendar 2026, producing a mid-teens return on invested capital for the consolidated U.S. Xpress business unit. In addition, KNX management expects the U.S. Xpress truckload business to perform similarly to Knight-Swift’s other truckload business units over time based on Knight-Swift’s historical execution and success with acquisitions.
Shares of U.S. Xpress (USX) rose 294% to $5.91 vs. the deal price of $6.15 in opening trading. Knight-Swift (KNX) jumped 6.99%. Other notable trucking and logistics sector movers included Yellow Corporation (YELL) +6.28%, BEST (BEST) +5.88%, Radiant Logistics (RLGT) +3.65%, GXO Logistics (GXO) +3.44%, Saia (SAIA) +2.68%, Werner Enterprises (WERN) +2.55%, Old Dominion Freight Line (ODFL) +1.75%, J.B. Hunt Transport (JBHT) +1.71%, and Daseke (DSKE) +1.70%. Other interesting movers were Proterra (PTRA) +9.20% and TuSimple (TSP) 4.90% higher from the electric vehicle sector.