On Monday, July 5, Knight-Swift Transportation Holdings Inc. acquired 100% of Dothan, Alabama-based AAA Cooper Transportation and an affiliated entity.
AAA Cooper is a leading less-than-truckload carrier that also offers dedicated contract carriage and ancillary services. AAA Cooper’s fleet includes nearly 3,000 tractors and 7,000 trailers and is expected to generate about $780 million in revenue for 2021.
According to a statement from Knight-Swift, the purchase price consideration consisted of $1.3 billion in cash, $10 million in Knight-Swift shares, and approximately $40 million in assumed debt, net of cash.
“We have long had an interest in the LTL space and admired the success of AAA Cooper,” said Knight-Swift CEO Dave Jackson. “We feel honored to be stewards of the AAA Cooper brand and, similar to previous acquisitions, AAA Cooper will continue to operate independently while benefitting from the many synergies we expect through Knight-Swift. Reid Dove has been appointed to the Knight-Swift board of directors and will continue to be the CEO of AAA Cooper.
“In seeking our first LTL partner, we had three main requirements – the scale for entry with significant market share, the profitability, and management depth to operate independently and provide a platform for compelling growth opportunities, and world-class culture. We were excited to have identified AAA Cooper as a partner that meets all three requirements, and I couldn’t be happier to finally find the right time for both of us to create a partnership. This transaction firmly positions us as a meaningful player in the LTL space, where we intend to grow both organically and through future acquisitions.”