Knight-Swift Transportation Acquires Dependable Highway Express
Knight-Swift Transportation Holdings Inc. has acquired the operating assets and assumed certain liabilities of the non-union regional less-than-truckload (LTL) division of Dependable Highway Express, Inc. (DHE). This acquisition, effective July 30, 2024, is a strategic move to expand Knight-Swift's network in key Southwest markets, increasing their LTL terminal and door counts by approximately 10% and covering around 70% of the U.S. population. The integration of DHE will enhance Knight-Swift's service offerings and provide expanded opportunities for DHE employees under the leadership of Joe Finney, who will continue as President.
William Carlin
31 Jul 2024 3:02 PM
Acquisition Details
Knight-Swift Transportation Holdings Inc. (NYSE: KNX) announced the acquisition of the operating assets and assumption of certain liabilities of the non-union regional less-than-truckload (LTL) division of Dependable Highway Express, Inc. (DHE). The acquisition, effective July 30, 2024, is expected to be immediately accretive to Knight-Swift's earnings per share. The transaction brings the Company's LTL terminal and door counts up by approximately 10%, expanding its network coverage to roughly 70% of the U.S. population.
Strategic Expansion into the Southwest
Knight-Swift CEO Adam Miller expressed enthusiasm about the expansion into key Southwest markets, including California, Arizona, and Nevada. The acquisition will allow Knight-Swift to enhance its service offerings and coverage area, connecting the DHE network with its existing AAA Cooper and MME businesses for seamless coast-to-coast service. The integration aims to provide creative solutions and excellent service to a broader customer base.
Welcoming DHE Employees
Miller welcomed DHE employees to the Knight-Swift family, highlighting the potential for expanded opportunities and enhanced service offerings. He acknowledged the efforts of the teams at Knight-Swift, AAA Cooper, and DHE in facilitating a smooth transition.
Statements from Dependable
Ronald Massman, CEO of Dependable, praised the DHE LTL team's legacy and expressed confidence in Knight-Swift as a steward of the business. The Massman family, who has led Dependable for over 70 years, emphasized Knight-Swift's alignment with their core values of integrity, service, and diversity.
Financial and Operational Overview
The financial terms of the deal were not disclosed. DHE generated approximately $122 million in total operating revenue over the past twelve months, with an operating margin of around 10%. Post-acquisition, DHE will continue to operate under the AAA Cooper corporate group, with Joe Finney, the former Chief Operating Officer of DHE, assuming the role of President.
About Knight-Swift
Knight-Swift Transportation Holdings Inc. is one of North America's largest and most diversified freight transportation companies. It provides a range of services, including truckload transportation, less-than-truckload, logistics, and business services, using a nationwide network of business units and terminals. Knight-Swift is noted for operating the largest tractor fleet in the U.S. and partnering with third-party equipment providers.
Note From Dependable Supply Chain Services:
"IMPORTANT NOTICE - We've noticed some confusion regarding our recent transaction with Knight-Swift. To clarify, Knight-Swift has acquired only our LTL business operating in CA, AZ, and NV. All other Dependable Highway Express services and divisions, including Harbor Drayage, Truckload, Dependable Distribution Centers, and Dependable Logistics Solutions, remain fully under our ownership and continue to operate independently. The LTL division will be rebranded as DHE Transportation and join the AAA Cooper LTL Division of the Knight-Swift family. For full details, please read the following."
"Dependable Supply Chain Services Sells LTL Business To Knight-Swift, Retains Full Operations Of Other Division
July 31, 2024
The sale to Knight-Swift only includes our LTL business operating in CA, AZ, and NV. This has no bearing on other Dependable Highway Express transportation services or other Dependable Supply Chain Services (DSCS) divisions. Dependable Highway Express, Incorporated continues to operate as a standalone private entity, including Dependable Highway Express’s Harbor Drayage and Truckload Services, Dependable Distribution Centers, and Dependable Logistics Solutions. Dependable Highway Express will continue to operate under our existing DOT #, Motor Carrier #, and SCAC code/DPHE. Dependable Supply Chain Services’ (DHE LTL) LTL division will be rebranded as DHE Transportation within the Knight-Swift (KNX) family of companies. This group, known as DHE Transportation will now become a part of the AAA Cooper LTL Division of KNX"
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