We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Knight-Swift makes second acquisition of 2021 to further grow its LTL network

Knight-Swift makes second acquisition of 2021 to further grow its LTL network

Arizona trucking giant becomes 13th largest LTL carrier in the U.S. in $150 million deal to buy Midwest Motor Express and Midnite Express.

MME-knight-swift-Screen-Shot-2021-12-06-at-4.30.02-PM.png
December 6, 2021
Supply Chain Quarterly Staff
No Comments

Truckload carrier Knight-Swift Transportation Holdings Inc. is continuing to add capacity by acquiring smaller carriers, announcing today that it has paid $150 million to buy Midwest Motor Express Inc. and Midnite Express Inc. in a move to expand its nationwide less than truckload (LTL) footprint.

Phoenix, Arizona-based Knight-Swift bought the two units, which are known collectively as MME, from an ownership group of three investment firms; Red Arts Capital, Prudential Capital Partners, and Brightwood Capital Advisors.

According to the fleet, MME’s footprint in the upper midwestern and great northwestern regions of the U.S. will complement both Knight-Swift’s existing LTL presence in the southeastern and midwestern areas and its AAA Cooper Transportation (ACT) brand. Knight-Swift acquired ACT just six months ago, paying $1.35 billion to enter the LTL space and diversify its revenue streams.

As the new owner of MME, Knight-Swift said it has already identified “potential areas of revenue and cost synergies that are expected to lead to growth and margin expansion” but that it plans to preserve “MME’s brand, locations, people, and culture.”

The MME package includes LTL, full truckload, and specialized and international logistics transportation services conducted through a network of over 30 service centers with a door count of approximately 800, served by a fleet of some 460 tractors and 930 trailers. Knight-Swift is much larger, operating about 19,000 tractors, 58,000 trailers, and employing 24,000 people for its logistics services throughout the U.S., Mexico, and Canada.

More specifically, Knight-Swift CEO Dave Jackson said that “MME is our next step toward a nationwide LTL network. While preserving and supporting MME’s identity and culture, we expect to bring many synergies from Knight-Swift. MME and ACT have minimal regional overlap, and we expect they will be a benefit to one another."

Financial analysts agreed with Jackson, saying that despite the large size difference between the two firms, the move is a “smaller but important step in building out [its] national LTL footprint,” according to a note to investors from Baird Senior Research Analyst Garrett Holland.

The MME deal marks Knight-Swift’s latest strategic step closer to building a national LTL network, evolving its business mix, and helping to reduce cyclical changes in revenue, Holland said. Stacked alongside the ACT buyout, the MME deal will push Knight-Swift to become the 13th largest LTL carrier in the U.S. 

Despite those impacts, current MME clients will likely see little disruption. Holland noted that the current MME leadership team will continue to run operations, and there is little overlap between its operating region and ACT’s southeastern/midwestern LTL footprint.

 

Trucking
KEYWORDS Knight-Swift Transportation
    • Related Articles

      Knight-Swift jumps into hot LTL market with $1.35 billion takeover

      Embark to equip Knight-Swift trucks with autonomous software

      Knight-Swift receives first Embark-powered truck

    Recent Articles by Supply Chain Quarterly Staff

    Cargo theft and fraud rose 41% in the first 20 weeks of 2023 over last year, CargoNet warns

    Gartner: Top supply chains of ’23 balance risk control, new growth channels

    OSHA, industrial safety experts to headline National Forklift Safety Day 2023

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing