Knight-Swift Transportation Holdings Inc. (KNX) is excited to announce the acquisition of the LTL division of Dependable Highway Express. Founded over 70 years ago and led by multiple generations of the founding Massman family, the company gained a great reputation for reliability and dependability. A bit different from prior acquisitions, this purchase is a carve-out of DHE from the seller’s other lines of business. The remaining lines of business in Dependable Supply Chain Services will continue operating under the seller’s existing ownership team. The newly acquired business will continue to operate under the name DHE Transportation.

We approach acquisition opportunities with great care and extensive diligence. As an industry leader, we are in position to consider many opportunities each year, and we only pursue options aligned with our strategic priorities that will bring our required returns on investment. Creating a nationwide LTL footprint remains one of our most important strategies and should drive meaningful value for our businesses and for our shareholders.

The acquisition of DHE Transportation adds new service centers throughout California, Nevada and Arizona, which increases our access to serve high-density markets in which it is difficult to grow organically. When connected with AAA Cooper and MME existing networks, we will have the ability to serve LTL customers from coast-to-coast, extend length of haul to all existing LTL customers through the future combined network and provide overnight service to certain new locations.

Knight-Swift CEO, Adam Miller, commented, “I want to welcome the DHE Transportation employees to the Knight-Swift family and look forward to working together to deliver creative solutions and excellent service to even more customers. Coupling the proud DHE brand with our resources, network, and scale should represent expanded opportunities for employees and enhanced offerings for customers. We are grateful for the efforts of many at Knight-Swift, AAA Cooper, and DHE who have worked to bring this transaction to fruition and who will continue to work together to ensure a smooth transition for all employees and customers.”

DHE Transportation has nearly 600 employees, including drivers, dock workers, shop and office associates. DHE has 300 tractors and 14 service centers and generated $122M of revenue over the prior 12 months. Through integrating systems with our existing AAA Cooper and MME businesses, we anticipate significant opportunities to grow revenue, improve profitability, and generate a strong return on our investment.

Due to the carve-out arrangement, there will be an initial transition period where administrative services and functions such as I/T software, financial and operating systems will be systematically merged into AAA Cooper’s systems. This arrangement will allow continuity of service to customers during the transition period. We are confident that our leadership at AAA Cooper and MME and their very capable teams will facilitate the transition successfully.

Please join us in offering a warm welcome to DHE Transportation, the newest addition to the array of amazing companies and brands that make up the Knight-Swift family of companies! You can read more via our press release here.

Knight-Swift Acquires DHE Transportation

Related Posts