Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/821508
10 commercial carrier journal | may 2017 JOURNAL NEWS Swift, Knight plan huge merger T rucking giants Swift Transportation (CCJ Top 250, No. 4) and Knight Transportation (No. 24) announced April 10 that the two companies will merge, pending the closing of a deal later this year. The all-stock merger was approved by both the Swift and Knight boards. Following the merger, the compa- nies will be known as Knight-Swift Transportation Holdings Inc. and will trade on the New York Stock Exchange under the ticker symbol KNX. Current Swift shareholders will own 54 percent of the company, while Knight shareholders will own the remaining 46 percent. There will be just one class of shares with equal voting power for each share, according to the merger agreement. "Indeed, by coming together under common ownership, the companies will be able to capitalize on econo- mies of scale to achieve substantial synergies," said Swift Chairman Richard Dozer. "This is an exciting chapter in the Swift story, and every- one who is a part of it should be both proud of what we bring to the table and excited about what lies ahead. I am confident in this new team, in the new structure and in the future of Swift in the industry." According to the deal, each Swift share will be converted into 0.72 shares of the new company's stock through a reverse stock split. Each Knight share will be exchanged for one share of the new company. Knight-Swift's board of direc- tors will consist of all of Knight's directors and four of Swift's. Jerry Moyes, founder of Swift, will serve as a nonemployee director and senior adviser to the execu- tive chairman and vice chairman. Moyes' family will own about 24 percent of the company. The leadership team will consist of Kevin Knight, executive chair- man; Gary Knight, vice chairman; David Jackson, chief executive offi- cer; and Adam Miller, chief finan- cial officer. "Under this ownership structure, we will be able to operate our dis- tinct brands independently with experienced leadership in place," says Knight CEO Kevin Knight. "We look forward to learning from each other's best practices as we seek to be the most efficient company in the industry. We are dedicated to a seamless transition and ensuring continuity for our customers and professional driving associates." In 2016, Swift reported just over $4 billion in revenue, and Knight reported $1.1 billion. The merger is expected to close in the third quarter. – Matt Cole sales@prestolite.com • www.idleproextreme.com • +1 (800) 354-0560 © 2017 Prestolite Electric Inc. Assembled In The innovative new IdlePro ™ and IdlePro Extreme ™ high-ef ciency/high- output alternators feature exclusive technologies that help extend battery life and increase vehicle uptime. • Superior amperage at low engine RPM • Engine-saving Isolated Ground Technology • Remote Sense capable Industry-Best Output at Low Engine Speeds Learn more @PrestoliteElectric Following the merger between Swift Transportation and Knight Transporta- tion, the companies will be known as Knight-Swift Transportation Holdings Inc.