Knight-Swift Transportation Holdings (Knight-Swift) acquired 100% of the equity interests of UTXL, a third-party logistics company based in Kansas City, Missouri, that specializes in over-the-road full truckload and multi-stop loads in any length of haul throughout the U.S., Canada, and Mexico. The acquisition was completed on June 1.
The purchase price consideration was approximately $22.5 million, a portion of which was placed in escrow to secure indemnification obligations and is subject to a customary working capital adjustment and additional potential deferred payments over the next two years.
"The UTXL team’s excellence in providing customer-specific solutions will be an invaluable complement to our Knight-Swift transportation service offerings,” Knight-Swift CEO Dave Jackson said. “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."
UTXL generated over $100 million in operating revenue last year, contributing to an operating ratio in the low-90s.
"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,” Paul Schultz, UTXL CEO, commented. “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,” Schultz added. “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."
