Knight-Swift Transportation, the Phoenix-based trucking carrier, said Monday that it has acquired RAC MME Holdings LLC, which runs shipping operations in the north, for $150 million in cash.
The purchase expands Knight-Swift Transportation Holdings Inc.'s (NYSE: KNX) reach in the less-than-truckload, or LTL, market for a company that has historically run full freight loads. The RAC MME Holdings LLC purchase comes just months after Knight-Swift purchased AAA Cooper Transportation, another LTL player, for $1.35 billion in July.
Bismarck, North Dakota-based RAC MME Holdings runs two subsidiaries, Midwest Motor Express, Inc. and Midnite Express Inc., which are collectively known as MME. The company was previously owned by a collection of private equity interests including Chicago-based Red Arts Capital, Prudential Capital Partners, and Brightwood Capital Advisors.
Traders reacted positively to the purchase news. Knight-Swift shares gained as much as 5% in Monday trading before closing at $59.63, a $2.17 (3.78%) gain for the day.