Knight-Swift Closes U.S. Xpress Buyout, Projects Lower-Than-Expected Q2 Results
Portfolio Pulse from Lekha Gupta
Knight-Swift Transportation Holdings Inc (NYSE:KNX) has completed the acquisition of U.S. Xpress Enterprises, Inc. The deal was valued at around $808 million, with Knight-Swift assuming U.S. Xpress' $484 million of outstanding debt and purchasing its outstanding equity for $324 million. Following the transaction, U.S. Xpress was de-listed from the NYSE. However, Knight-Swift expects Q2 results to be lower than expected due to weakness in the full truckload market. The company's shares are trading lower by 2.80% at $54.35.
July 05, 2023 | 3:29 pm
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Knight-Swift's acquisition of U.S. Xpress could potentially strengthen its market position, but the company's Q2 results are expected to be lower than anticipated due to a weak full truckload market.
The acquisition of U.S. Xpress could potentially enhance Knight-Swift's market position and revenue. However, the company's warning of lower-than-expected Q2 results due to a weak full truckload market could negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100