Knight-Swift Acquires Dependable Highway Express' LTL Division
Knight-Swift Transportation Holdings Inc., one of North America's largest freight transportation companies, has acquired the less-than-truckload (LTL) division of Dependable Highway Express, Inc. (DHE). This strategic acquisition aims to enhance Knight-Swift's LTL capabilities, expanding its reach across key markets in California, Arizona, and Nevada.
Expanding LTL Network
The acquisition adds significant value by increasing Knight-Swift's terminal and door counts by approximately 10%, extending the company's coverage to 70% of the U.S. population. This move aligns with Knight-Swift's strategy to build a nationwide LTL network, offering seamless coast-to-coast service. The integration of DHE with Knight-Swift's existing LTL services, including AAA Cooper and Midwest Motor Express (MME), is expected to provide enhanced offerings to customers (GOV.UK).
Leadership and Transition
Joe Finney, former Chief Operating Officer of DHE, will continue to lead the division as its President under the AAA Cooper corporate group. This continuity aims to ensure a smooth transition for both employees and customers. Knight-Swift's CEO, Adam Miller, expressed enthusiasm for the acquisition, highlighting the expanded opportunities for employees and enhanced service offerings for customers.
Strategic Significance and Market Impact
The acquisition is not just a geographical expansion but also a strategic move to strengthen Knight-Swift's position in the competitive LTL market. By acquiring a well-established player like DHE, Knight-Swift can better serve a broader customer base and improve its service quality and efficiency.
The financial details of the acquisition were not disclosed, but DHE's LTL division reportedly generated approximately $122 million in revenue over the past year, with a 10% operating margin. This acquisition is expected to be immediately accretive to Knight-Swift’s earnings per share (GOV.UK).
Looking Ahead
As Knight-Swift continues to grow its LTL business, this acquisition represents a significant step in its strategy to offer comprehensive freight solutions across North America. The company's commitment to providing quality service and its strategic acquisitions are expected to bolster its market presence and customer satisfaction.
For more information about Knight-Swift and its recent acquisitions, visit their official website.