Why U.S. Xpress Enterprises (USX) Shares Are Skyrocketing Today - Knight-Swift (NYSE:KNX)

Knight-Swift Transportation Holdings Inc KNX has agreed to acquire U.S. Xpress Enterprises Inc USX for a total enterprise value of ~$808 million, excluding transaction costs.
The total enterprise value represents Knight-Swift assuming USX's $484 million of outstanding debt and finance leases and purchasing its outstanding equity for $324 million, or $6.15 per share.
The deal represents a 310% premium over USX's closing stock price of $1.50 on Mar. 20, 2023.
As part of the deal, Max Fuller, Executive Chairman of U.S. Xpress, and Eric Fuller and related entities will rollover a portion of their shares of USX into an approximately 10% interest in a new Knight-Swift subsidiary formed to hold the U.S. Xpress business post-closing.
U.S. Xpress is expected to add ~$2.2 billion in total operating revenue (including $1.8 billion in truckload revenue), 7,200 tractors, and 14,400 trailers to Knight-Swift's consolidated enterprise.
The combined revenue run-rate for Knight-Swift after the transaction is expected to be close to $10 billion, and the truckload fleet will consist of about 25,000 tractors and 93,000 trailers.
KNX expects the transaction to be accretive to its adjusted earnings per share starting in 2024.
U.S. Xpress will continue as a separate brand and operation to minimize disruptions for the driving associates, shop and office employees, and customers.
Knight-Swift had ~$1.3 billion unrestricted cash and available liquidity on Dec. 31, 2022, a portion of which will fund the transaction.
Upon completion of the transaction, which is expected late in Q2 or early Q3 of 2023, USX will de-list from the NYSE.
Price Action: KNX shares are trading higher by 5.95% at $56.24, and USX is higher by 286.67% at $5.98 on the last check Tuesday.
Photo Via Company

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Why U.S. Xpress Enterprises Shares Are Skyrocketing Today