Knight-Swift (KNX) Acquires MME for $150M to Expand LTL Network
Knight-Swift Transportation Holdings KNX has acquired 100% of RAC MME Holdings, LLC and its subsidiaries, which consist of Midwest Motor Express, Inc. and Midnite Express Inc. (together, "MME").
A more than 100-year-old company, MME provides less-than-truckload ("LTL"), full truckload, and specialized and international logistics transportation services across the United States. The entity is expected to generate revenues of approximately $137 million and adjusted EBITDA of $27 million for 2021. It has a fleet of around 460 tractors and 930 trailers.
The acquisition expands Knight-Swift’s LTL network by building on its previous acquisition of AAA Cooper Transportation in July. The recent transaction is expected to add 6 cents to KNX’s adjusted earnings per share in 2022. Over the long term, the MME acquisition is expected to generate revenues and cost synergies, which are likely to drive growth and margin expansion for KNX.
Knight-Swift Transportation Holdings Inc. Price
KnightSwift Transportation Holdings Inc. price | KnightSwift Transportation Holdings Inc. Quote
Knight-Swift’s CEO, Dave Jackson, said, "We are excited to welcome MME to the Knight-Swift organization. MME is our next step toward a nationwide LTL network.”
The purchase price of the acquisition included $150 million in cash. Knight-Swift funded the transaction through cash-on-hand and borrowing from its revolving credit facility.
Zacks Rank & Other Key Picks
Knight-Swift sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are some other top-ranked stocks in the Transportation - Truck industry:
ArcBest Corporation ARCB sports a Zacks Rank #1. The company has a stellar earnings surprise history, having trumped the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 27.4%.
Shares of ArcBest have surged more than 100% so far this year.
Saia SAIA also carries a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 14.8%.
Shares of Saia have rallied more than 76% so far this year.
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