Knight-Swift Transportation continued its efforts to establish a national network by acquiring RAC MME Holdings for upwards of $150 million.
“MME is our next step toward a nationwide LTL network,” Knight-Swift CEO Dave Jackson reportedly said. “While preserving and supporting MME’s identity and culture, we expect to bring many synergies from Knight-Swift. MME and (AAA Cooper Transportation) have minimal regional overlap, and we expect they will be a benefit to one another.”
RAC MME Holdings reportedly includes subsidiaries such as Midwest Motor Express and Midnite Express, routinely referred to as “MME.” Established more than 100 years ago, MME has a long-established reputation for providing less-than-truckload (LTL) services, as well as full truckload and logistics, primarily in the upper Midwestern and Northwestern regions of the U.S. Its regional footprints appear to be a seamless complement to Knight-Swift operations in the Southeastern and Midwestern U.S. Bringing the LTL service areas under one roof theoretically allows Knight-Swift access to more than half the continental U.S., when factoring in is its AAA Cooper Transportation (ACT) brand.
“Less-Than-Truckload is an integral part of our nation’s supply chain, and we had deep conviction in the industry’s tailwinds supporting this segment of logistics transportation,” managing partner at Red Arts Capital Nicholas Antoine reportedly said. “With MME, we found the ideal opportunity to invest in an excellent business with an extensive network, including most metropolitan areas across its network geographic footprint. We are proud of our contributions to the Company’s over 100 years of growth and service to the region, and believe that Knight-Swift provides MME the ideal home for its next phase of growth.”
MME, headquartered in Bismarck, N.D., possesses more than 30 service centers and a fleet estimated at 360 tractors and 930 trailers. The largely LTL outfit enjoys a customer base dispersed through the U.S., Canada, and Puerto Rico. Trucking and logistics experts generally agree that the freight hauling industry is trending toward corporate expansion and service diversification.
“The transaction appears to confirm our expectation that major players in the trucking industry will continue to move toward diversification of service offerings, including truckload, LTL, final mile, and logistics/brokerage,” FTR vice president Avery Vise reportedly commented on the acquisition. “Shippers increasingly expect their transportation providers to offer complete solutions.”
Knight-Swift ranks among the freight haulers and logistics organizations making aggressive growth moves in the industry. It announced the $22.5 million acquisition of Kansas City-based UTXL in June. Business leaders at UTXL offered positive comments about integrating services and assets, saying Knight-Swift “strongly aligns with our UTXL goals.”
Similarly, MME CEO Marlin Kling indicated that “being part of building the next nationwide LTL network” is “an exciting development for MME and its employees. We look forward to achieving synergies, sharing best practices, and creating value for all Knight-Swift stakeholders.”
Sources: ccjdigital.com, businesswire.com
Leave a Comment