Why Knight Is Taking Over Swift…

by Tom Moore on Apr 10, 2017 8:00:00 PM

While Swift has four times more trucks than Knight, the market has valued them about the same – why?

Swift has lots of debt // Knight has none
Swift’s operating ratio is higher than Knight’s

They called it a merger, but here is the key – Knight’s management will run the new entity…

The combined business:

23,000 truck tractors and 28,000 employees
Maintain separate branded operations but will work under a holding company structure that adds new corporate controls
Knight has effective board control

Since Schneider just went public and has the cash to grow, the new entity should have the size and discipline to be profitable.

Oil is nearly $53!

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