U.S. markets closed
  • S&P 500

    4,354.19
    -3.54 (-0.08%)
     
  • Dow 30

    33,919.84
    -50.63 (-0.15%)
     
  • Nasdaq

    14,746.40
    +32.49 (+0.22%)
     
  • Russell 2000

    2,187.90
    +5.70 (+0.26%)
     
  • Crude Oil

    70.51
    +0.22 (+0.31%)
     
  • Gold

    1,776.00
    +12.20 (+0.69%)
     
  • Silver

    22.51
    +0.31 (+1.38%)
     
  • EUR/USD

    1.1729
    +0.0001 (+0.01%)
     
  • 10-Yr Bond

    1.3240
    +0.0150 (+1.15%)
     
  • GBP/USD

    1.3660
    +0.0001 (+0.01%)
     
  • USD/JPY

    109.2000
    -0.2200 (-0.20%)
     
  • BTC-USD

    42,266.89
    -1,618.80 (-3.69%)
     
  • CMC Crypto 200

    1,047.91
    -15.94 (-1.50%)
     
  • FTSE 100

    6,980.98
    +77.07 (+1.12%)
     
  • Nikkei 225

    29,839.71
    -660.34 (-2.17%)
     

Knight-Swift (KNX) Buys LTL Carrier AAA Cooper for $1.35B

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Knight-Swift Transportation Holdings KNX has acquired Dothan, AL-based less-than-truckload ("LTL") carrier AAA Cooper Transportation for an enterprise value of $1.35 billion, following which shares of the company rose 3.9% at the close of business on Jul 6.

Apart from LTL services, AAA Cooper also offers dedicated contract carriage and ancillary services. The company’s fleet consists of nearly 3,000 tractors and 7,000 trailers. It is expected to generate revenues of approximately $780 million, EBITDA of $140 and operating income of $80 million in 2021.

The acquisition marks Knight-Swift’s foray into the LTL market, and is expected to be accretive to its adjusted earnings per share in the third quarter of 2021 itself. Over the long term, the transaction is expected to generate revenues and cost synergies, leading to growth and margin expansion.

KnightSwift Transportation Holdings Inc. Price

KnightSwift Transportation Holdings Inc. Price
KnightSwift Transportation Holdings Inc. Price

KnightSwift Transportation Holdings Inc. price | KnightSwift Transportation Holdings Inc. Quote

Knight-Swift has stated that AAA Cooper will continue to operate independently. Besides continuing to serve as the CEO of AAA Cooper, Reid Dove has been appointed to Knight-Swift’s board.

The transaction, consisting of $1.3 billion in cash, $10 million in Knight-Swift shares and approximately $40 million in assumed debt, was funded by a new $1.2-billion term loan and Knight-Swift’s existing liquidity.

At a time when freight demand is steadily improving, Knight-Swift’s successive acquisitions to widen its network are encouraging. Last month, the company acquired Kansas City, MO-based third-party logistics company UTXL, Inc for approximately $22.5 million.

Zacks Rank & Key Picks

Knight-Swift carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Transportation - Truck industry are USA Truck USAK, ArcBest Corporation ARCB and Landstar System LSTR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of USA Truck, ArcBest and Landstar have rallied more than 84%, 100% and 37% in a year’s time, respectively.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report

ArcBest Corporation (ARCB) : Free Stock Analysis Report

Landstar System, Inc. (LSTR) : Free Stock Analysis Report

USA Truck, Inc. (USAK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research