Swift Transportation and Knight Transportation shocked the trucking world on Monday morning when they announced plans to merge, forming a $5 billion dollar mega-trucking company.
The new entity will be called ‘Knight-Swift Transportation Holdings’ and former Knight CEO Dave Jackson will become the Chief Executive. Despite being owned by the new parent company, both companies will continue to run independently.
Combined, both companies earned $416 million in operating profit last year, on $5.1 billion in total revenue. Executives say the newly formed company will save up to $150 million in 2019 due to increased efficiency created by the merger.
Since December 2016, both companies’ stock prices have fallen more than 20%
“I cannot think of a better combination. The Knight and Moyes families grew up together, and the Knights helped me build Swift before starting their own company and making it an industry leader in growth and profitability. I am confident that we have the right approach to maximizing the contribution of both teams, and I look forward to helping the Knight-Swift leadership team in any way I can to continue the legacy of both great companies,” Swift founder Jerry Moyes said in a press release.
Knight-Swift will employ 28,000 people and have a massive fleet of 23,000 tractors and 77,000 trailers.