It's official: Swift Transportation and M.S. Carriers have merged to create what they say is the largest truckload carrier in the country.
Swift Transportation, Phoenix, and M.S. Carriers, Memphis, Tenn., have been working on the merger for nearly a year. The companies expect a smooth transition, with M.S. Carriers becoming a wholly owned subsidiary of Swift. With the merger, announced last December, Swift expects to generate more than $2 billion in revenue for 2001 with 15,000 tractors and 45,000 trailers.
The deal creates a huge truckload entity. Swift predicts the new company will be tops in the industry in revenue (excluding intermodal), net earnings, amount of equipment, stockholders' equity and market capitalization.
"For several years, we have believed that M.S. Carriers offered the best strategic fit of any potential merger partner," said Swift's Chairman, President, and CEO, Jerry Moyes. "Operationally, both companies focus on short-to-medium length of haul, regional operations. Swift is stronger in the western United States, while M.S. Carriers operates primarily in the eastern United States and in Mexico."
Technology is also an issue in the merger. Swift plans to capitalize on M.S. Carriers' greater investment in technology. Also, the merger gives Swift the largest ownership (30%) in Transplace.com. Swift and M.S. Carriers were both founding members of the Internet-based transportation logistics and e-procurement company formed by six of the seven largest publicly traded truckload carriers.
M.S. Carriers stockholders will receive 1.7 shares of Swift common stock for each share of M.S. Carriers common stock, with cash paid in lieu of the issuance of fractional shares. Swift common stock is traded on the Nasdaq National Market under the symbol "SWFT." Swift announced it closed its offering of 1.2 million shares of common stock at $16.
Swift Transportation, Phoenix, and M.S. Carriers, Memphis, Tenn., have been working on the merger for nearly a year. The companies expect a smooth transition, with M.S. Carriers becoming a wholly owned subsidiary of Swift. With the merger, announced last December, Swift expects to generate more than $2 billion in revenue for 2001 with 15,000 tractors and 45,000 trailers.
The deal creates a huge truckload entity. Swift predicts the new company will be tops in the industry in revenue (excluding intermodal), net earnings, amount of equipment, stockholders' equity and market capitalization.
"For several years, we have believed that M.S. Carriers offered the best strategic fit of any potential merger partner," said Swift's Chairman, President, and CEO, Jerry Moyes. "Operationally, both companies focus on short-to-medium length of haul, regional operations. Swift is stronger in the western United States, while M.S. Carriers operates primarily in the eastern United States and in Mexico."
Technology is also an issue in the merger. Swift plans to capitalize on M.S. Carriers' greater investment in technology. Also, the merger gives Swift the largest ownership (30%) in Transplace.com. Swift and M.S. Carriers were both founding members of the Internet-based transportation logistics and e-procurement company formed by six of the seven largest publicly traded truckload carriers.
M.S. Carriers stockholders will receive 1.7 shares of Swift common stock for each share of M.S. Carriers common stock, with cash paid in lieu of the issuance of fractional shares. Swift common stock is traded on the Nasdaq National Market under the symbol "SWFT." Swift announced it closed its offering of 1.2 million shares of common stock at $16.
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