Knight-Swift Transportation Holdings Inc.Announces Acquisition of Shares of UTXL, Inc., a Leading Third-Party Logistics Company, Based in Kansas City, Missouri
PHOENIX–(BUSINESS WIRE) – On Tuesday, June 1, 2021, Knight-Swift Transportation Holdings Inc. (NYSE: KNX) (âKnight-Swiftâ), acquired 100% of the interests of UTXL, Inc., based in Kansas City, Missouri (âUTXLâ ). UTXL is a leading third-party logistics company specializing in full and hop-on hop-off road loads on all lengths of transport in the United States, Canada and Mexico.
The consideration for the purchase price was approximately $ 22.5 million, part of which was placed in receivership to secure the indemnification obligations. The purchase price consideration is subject to customary working capital adjustment and additional potential deferred payments over the next two years. UTXL generated over $ 100 million in operating revenue last year, contributing to an operating ratio in the 90s.
Knight-Swift CEO Dave Jackson expressed the following: âThe excellence of the UTXL team in delivering customer-specific solutions will be an invaluable addition to our Knight-Swift transportation service offerings. UTXL provides exceptional and unique customer service with some of the most demanding service requirements. Knight-Swift will support the UTXL brand and independent operations, in line with previous acquisitions, while leveraging technology and economies of scale to create synergies. ”
Paul Schultz, CEO of UTXL, said: âWhen the UTXL ownership group first discussed the sale, we made it clear that the future of our people and cultural fit would be imperative to continue the discussions. with potential buyers. At UTXL, we are committed to striving for perfection and achieving excellence, and we have found a similar goal within the Knight-Swift team. We also recognized Knight-Swift’s commitment to employee development and success, as well as the empowerment of regional leadership teams, which strongly aligns with our UTXL goals. Once UTXL and Knight-Swift entered into discussions, we quickly realized that we had found a dynamic management team to support us, as we gained momentum in growing our business and continuing to strengthen the UTXL brand. . We are proud of our accomplishments at UTXL and excited by the opportunities. ahead of us as we embark on this journey with the Knight-Swift team. ”
Scudder Law Firm, PC, LLO of Lincoln, Nebraska served as legal and transaction counsel and Dinan Capital Advisors served as financial advisor to Knight-Swift. Dysart Taylor Cotter McMonigle & Brumitt, PC of Kansas City, Missouri, served as legal counsel for UTXL.
Knight-Swift Transportation Holdings Inc. is a provider of multi-truck transportation and logistics services using a nationwide network of business units and terminals in the United States and Mexico to serve customers across North America. In addition to operating the largest tractor fleet in the country, Knight-Swift also contracts with third-party equipment suppliers to provide a wide range of truck-loading services to its customers while creating driver jobs. driving quality for our associates and successful business opportunities for independent contractors.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as âanticipatesâ, âbelievesâ, âestimatesâ, âplansâ, “Projects”, “expects”, “hopes”, “intends”, “will”, “could”, “may” and terms and expressions of similar substance. In this press release, forward-looking statements cover matters such as the future operations of UTXL. Forward-looking statements are based on the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to occur. differ materially from those set forth in, contemplated by or underlying any forward-looking statements. Accordingly, actual results may differ from those stated in forward-looking statements. Readers should examine and take into account factors that may affect future results and other disclosures of Knight-Swift in its press releases, shareholder reports, annual report on Form 10-K, and other filings with the Securities. and Exchange Commission. Knight-Swift disclaims any obligation to update or revise forward-looking statements to reflect actual results or changes in factors affecting forward-looking information.