Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/818577
May 2017 | Overdrive | 15 The merger of two of the con- tinent's largest trucking compa- nies, Swift Transportation and Knight Transportation, won't impact driver jobs, a transpor- tation financial analyst said. The Phoenix-based compa- nies made it clear they intend to remain independent oper- ations after the merger deal, said Brad Delco, managing director and research analyst for Stephens Inc. Both carriers are offering loyalty bonuses to drivers who stay with the companies — an extra penny per mile from May through whenever the deal closes, which Delco said likely will be between July and September. The merger's key goal, said Delco, is to increase Swift's efficiency and profitability by bringing Knight's manage- ment style to the truckload giant. Knight has "one of the best management teams in the country," Delco said, which caught the eye of Swift own- ership about a year ago when merger talks began. "They have some of the best margins in the business, and as a result, they have some of the best returns on invested capital." The new company, Knight- Swift Transportation Holdings Inc., will operate about 30,000 tractors and employ about that many drivers. Swift brings the lion's share of those numbers to the deal – about 25,000 tractors and 22,000 drivers, ac- cording to 2015 data. In 2016, Swift earned over $4 billion in revenue, while Knight brought in $1.18 billion. – James Jaillet Swift-Knight merger creates 30,000-truck fleet