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Phoenix-based Knight-Swift Transportation acquires Alabama company in $1.35B deal

Semi truck 18 wheeler on the highway at sunset
Posted at 8:55 AM, Jul 07, 2021
and last updated 2021-07-07 11:55:05-04

Knight-Swift Transportation Holdings Inc., a trucking company based in Phoenix, is acquiring AAA Cooper Transportation of Dothan, Alabama in a deal valued at $1.35 billion, according to a Tuesday announcement.

Knight-Swift is the largest truckload carrier by revenue in the county, but the acquisition moves the company into the LTL (less than truckload) market for deliveries along the so-called "final mile" before a package reaches its destination.

The purchase price for AAA Cooper consisted of $1.3 billion in cash, $10 million in Knight-Swift shares and about $40 million in assumed debt. Knight-Swift said cash for the transaction came from a new $1.2 billion term loan from Bank of America in addition to existing liquidity.

The acquisition closed on July 5 and gave Knight-Swift 100% ownership of AAA Cooper. The company said the deal is expected to be accretive, or provide a boost, to Knight-Swift’s earnings in the third quarter.

Read more of this story from the Business Journal.