Knight-Swift To Acquire U.S. Xpress Enterprises For Enterprise Value Of $808 Mln

Knight-Swift Transportation Holdings Inc. (KNX) Tuesday announced that it will acquire U.S. Xpress Enterprises, Inc. (USX) for a total enterprise value of about $808 million, including debt, leases, etc.

As per the agreement, the U.S. Xpress stockholders will receive $6.15 per share in cash for each outstanding share of Class A and Class B common stock. The U.S. Xpress stockholders will receive 310 percent premium over U.S. Xpress' closing stock price on Monday.

The transaction is expected to be accretive to Knight-Swift's adjusted earnings per share starting in 2024 and is expected to increase Knight-Swift's revenue base by nearly 30 percent. The deal might be closed by late second quarter or early third quarter 2023.

U.S. Xpress CEO, Eric Fuller said U.S. Xpress will continue to operate as an independent brand.

While revealing the agreement, Knight-Swift said the transaction has been unanimously approved by both the Board.

Max Fuller, Executive Chairman of U.S. Xpress, and Eric Fuller and related entities will roll over a portion of their shares of U.S. Xpress into an approximately 10 percent interest in a new Knight-Swift subsidiary formed to hold the U.S. Xpress business post-closing.

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