Knight-Swift to Acquire U.S. Xpress
Knight-Swift Transportation Holdings' proposed $808 million acquisition of U.S. Xpress Enterprises is expected to close at the end of the third quarter of this year. The transaction offers economies of scale and will increase Knight-Swifts fleet from 17,200 to 25,000 trucks and the annual revenue run rate to $10 billion. Knight Swift CEO, Dave Jackson, intends to employ a similar strategy as with the Knight-Swift merger and advised that this would not slow down other growth initiatives or expand their less-than-truckload (LTL) network.1
Methanol Leads Green Fuel for Ocean Vessels
Methanol produced from renewable sources will likely play a key role in reducing greenhouse gas emissions in the shipping industry. The fuel can be stored at room temperature, while hydrogen and ammonia–the other two green-fuel candidates–need pressurized tanks that face safety and technical concerns. Around 100 ships capable of burning methanol have been ordered. Still, for the fuel to become viable, it must be cheaper and more available, and investments must be made in refueling infrastructure.2
Annual Parcel Growth to Continue
U.S. parcel shipping activity is expected to continue to increase despite a slight slowdown in 2022. It is projected to grow 5% per year over the next five years, with annual parcel volume expected to reach 28 billion by 2028, according to a report by Pitney Bowes. This projected increase in volume is encouraging for the parcel industry, which reported down or unchanged year-over-year growth from all four major delivery carriers in 2022.3
Federal Regulators Approve Large Rail Merger
The $28 billion deal between Canadian Pacific Railway and Kansas City Southern will create the first rail freight network connecting the U.S., Mexico, and Canada. Canadian Pacific expects this merger will divert freight from trucking toward the rail network taking pressure off the trucking industry’s driver shortage. Additionally, the merger will allow greater operational efficiencies and investments in their track network.4
Largest Transactions Closed
- Atlas Air Worldwide Holdings, Inc.
- Apollo Global Management, Inc.; J.F. Lehman and Company, LLC; Hill City Capital LP
- RSI Logistics, Inc.
- Trinity Industries, Inc.
- Trans American Customhouse Brokers, Inc.
- EFL Global LLC (USA)
Other Financial Buyer Transactions Closed
Other Strategic Buyer Transactions Closed
- Down 2 Fish Charters, LLC
- Arvana Inc.
Source S&P Capital IQ as of 4/14/2023 and PCE Proprietary Data
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes