Knight-Swift (CCJ Top 250, No. 5) on Tuesday acquired Los Angeles-based regional LTL carrier Dependable Highway Express, a move that strengthens Knight-Swift’s West Coast LTL operations and dovetails with Knight-Swift’s existing AAA Cooper and Midwest Motor Express businesses for coast-to-coast service. Terms of the deal were not disclosed.
The July 2021 acquisition of AAA Cooper instantly made Knight-Swift a major LTL player, and the company doubled down in its pursuit of a nationwide LTL network later in the year by acquiring complimentary regional LTL carriers Midwest Motor Express and Midnite Express.
“We are excited to take the next step toward building a nationwide LTL business,” Knight-Swift CEO Adam Miller said, “and especially to grow our network to include the key Southwest markets of California, Arizona, and Nevada.”
The deal increases Knight-Swift’s LTL terminal and door counts by approximately 10% and brings its network coverage of the U.S. population to approximately 70%.
“The strategic value of acquiring a strong Southwest competitor like DHE is meaningful, given the impact on our coverage area significantly expands the [number of] customers we can serve. Additionally, building or acquiring LTL facilities in many of these locations is difficult,” Miller added.
Dependable’s LTL division operated within the broader integrated services offering of Dependable Supply Chain Services (No. 141), and the company will continue to operate its full truckload, warehousing and distribution, harbor drayage and third-party logistics businesses under its existing Dependable Supply Chain Services brand.
DHE will operate as a separate brand under the AAA Cooper corporate group. Joe Finney, who served as DHE Chief Operating Officer prior to the transaction, will continue leading DHE as its President after the transaction.
Ronald Massman, DHE CEO, noted his family is proud of the legacy built by DHE and expressed his gratitude to his employees.
“While we never intended to sell the division, we have watched with admiration as Knight-Swift set about building a leading national LTL business,” he said. “When [Knight Swift] approached us about a transaction, we immediately saw the strategic merit of the Dependable LTL division joining the platform.”