Knight-Swift Continues Growing LTL Fleet With New $150 MILLION Acquisition
Phoenix, AZ — The largest trucking company in North America is continuing to grow its less-than-truckload (LTL) services.
On Monday, Knight-Swift Transportation announced the acquisition of RAC MME Holdings, LLC., and its subsidiaries, which operate under the brand names of Midwest Motor Express, Inc. and Midnite Express Inc. (MME).
The deal included $150 million in cash and was funded through cash-on-hand and borrowing on the Knight-Swift’s revolving credit facility.
MME provides LTL and full truckload services throughout the upper midwestern and great northwestern United States.
Additionally, it offers international logistics transportation services to customers in the U.S., Puerto Rico, and Canada.
The Bismarck, ND-based company operates a fleet of 460 tractors and 930 trailers with a network of over 30 service centers throughout its service area.
As for Knight-Swift, this acquisition comes only five months after the massive $1.35 billion purchase of Dothan, AL-based LTL giant AAA Cooper Transportation (ACT).
In a statement, Knight-Swift said the purchase of MME represents an “ongoing commitment to building a nationwide LTL footprint.”
“MME is our next step toward a nationwide LTL network,” said Knight-Swift CEO, Dave Jackson. “MME and ACT have minimal regional overlap, and we expect they will be a benefit to one another.”
Marlin Kling, president and CEO of MME, noted, “We believe that combining our company with North America’s truckload industry leader and being part of building the next nationwide LTL network is an exciting development for MME and its employees.”
The deal is expected to generate approximately $137 million in revenue, $27 million in Adjusted EBITDA, and $16 million in operating income for full-year 2021.