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Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Blogs/hot-news

03/23/2023

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Major Trucking Firm Knight-Swift Transportation Set to Acquire U.S. Xpress

    Major Trucking Firm Knight-Swift Transportation Set to Acquire U.S. Xpress

    The acquisition at four times Monday’s closing stock price for the rival carrier will boost Knight-Swift’s fleet to about 25,000 trucks

    The addition of U.S. Xpress’s 7,200 tractors and 14,400 trailers would boost Knight-Swift’s truckload fleet to roughly 25,000 tractors and 93,000 trailers

    Knight-Swift Acquires Rival Trucker U.S. Xpress

    Knight-Swift Transportation Holdings Inc. is acquiring U.S. Xpress Enterprises Inc. for approximately $808 million, strengthening one of the largest trucking companies in the United States.

    Deal Details and Stock Prices

    The Phoenix-based company announced on Tuesday that it will acquire U.S. Xpress for $6.15 per share in cash, a significant increase from Monday's closing price of $1.50 and 13% above its 52-week high of $5.44 from April.

    Revenue and Market Position

    The acquisition will contribute approximately $2.2 billion in total operating revenue, including $1.8 billion in truckload revenue, bringing the annual revenue run-rate for Knight-Swift to nearly $10 billion. Knight-Swift is the largest operator in the truckload sector, which involves transporting full loads for single customers, according to SJ Consulting Group.

    Fleet Expansion and Closing Terms

    U.S. Xpress's 7,200 tractors and 14,400 trailers will expand Knight-Swift's truckload fleet to around 25,000 tractors and 93,000 trailers. Knight-Swift will pay about $291 million in cash at closing, expected by the end of Q3, while the Fuller family, U.S. Xpress's co-founders, will roll shares valued at approximately $33 million into a new Knight-Swift unit. The company will also assume $484 million of U.S. Xpress debt. This deal represents Knight-Swift's largest since the 2017 merger with Swift Transportation Co. and the 2021 acquisition of AAA Cooper Transportation for $1.35 billion.

    Operations, Growth, and Analysts' Expectations

    Following the pattern of previous acquisitions, U.S. Xpress will function as a distinct brand with distinct operations. Tim Harrington, currently executive vice president for sales at Knight-Swift, will serve as president of U.S. Xpress, while the Fuller family steps down from executive positions.

    Knight-Swift cites economies of scale and limited opportunities for organic growth in the current trucking environment as justifications for the acquisition. It expects the transaction to begin contributing to adjusted per-share earnings the following year, aiming for at least $1.00 per share in 2026.

    Citigroup Inc.'s Christian Wetherbee noted the company's history of acquiring underperforming assets and improving profitability, prompting analysts to predict that Knight-Swift will implement operating improvements at U.S. Xpress to boost earnings.

     

     

    MintN

    Mint Nguyen

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