Benzinga | Jun 1, 2021 09:03AM EDT

Knight-Swift Transportation Holdings Acquires 100% Equity Interest In UTXL For $22.5M

On Tuesday, June 1, 2021, Knight-Swift Transportation Holdings Inc. (NYSE:KNX) ("Knight-Swift"), acquired 100% of the equity interests of Kansas City, Missouri-based UTXL, Inc. ("UTXL"). UTXL is a premier third-party logistics company, specializing in over-the-road full truckload and multi-stop loads in any length of haul throughout the United States, Canada, and Mexico.

The purchase price consideration was approximately $22.5 million, a portion of which was placed in escrow to secure indemnification obligations. The purchase price consideration is subject to a 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 low-90s.

Knight-Swift CEO, Dave Jackson, conveyed the following, "The UTXL team's excellence in providing customer-specific solutions will be an invaluable complement to our Knight-Swift transportation service offerings. UTXL provides outstanding and unique customer service with some of the truckload industry's most demanding service requirements. Knight-Swift will support the UTXL brand and independent operations, consistent with previous acquisitions, while leveraging technology and economies of scale to create synergies."

Paul Schultz, UTXL CEO, commented, "When the UTXL ownership group first discussed selling, we made it clear that the future of our people and the cultural fit would be imperative to further discussions with potential buyers. At UTXL we are committed to pursuing perfection and achieving excellence, and we found a similar focus within the Knight-Swift team. We additionally recognized Knight-Swift's commitment to employee development and success, as well as their empowerment of regional management teams, which strongly aligns with our UTXL goals. Once UTXL and Knight-Swift began discussions, we quickly realized that we found a dynamic leadership team to support us, as we gain momentum in growing our business and continue to strengthen the UTXL brand. We are proud of our accomplishments at UTXL and excited for the opportunities that are ahead of us, as we embark upon this journey with the Knight-Swift team."