Knight making moves to buy USA Truck, original deal rejected

| October 03, 2013

56-knight-1-e1278020643559Knight Transportation (No. 25 on CCJ‘s Top 250) made an attempt last week to buy the struggling USA Truck (No. 44 on CCJ‘s Top 250), which the USA board rejected. 

Knight, however, has said its shareholders are still interested in purchasing the company at its standing cash offer of $9 a share. This week, Knight disclosed it had increased its ownership of USA Truck’s outstanding shares from 8 percent to 11.3 percent. 

In a statement last week, Knight said it was “ready and willing” to move forward with the transaction, and the proposed value of its transaction was $242 million. 

USA Truck has yet to fully recover from the industry downturn from the 2008-2009 recession, and ongoing turnaround efforts have yet to yield consistent profits.

Knight’s per-share offer was 39 percent higher than USA Truck’s closing price on Sept. 25. 

USA, however, said the proposal and a Knight statement were a “disappointment.” Knight, too, said the rejection was a disappointment and said it is “prepared to take the necessary steps to make this combination a reality.” 

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  • John Scott

    What’s the old saying? Two wrongs don’t make a right. Just the fact you can buy a trucking company at $9 a share is scary reality that trucking is worth peanuts. Yea, deregulation sure helped the shippers and consumers but not much else.
    Made slave labor out of drivers and created a lot of trucking companies which either fail or merge.

  • Barton van Buskirk

    planes ,trucks,rail,meat companys,list goes on.. becoming the only way to stay in above the water line.. knight buys usa who will buy knight my guess will be swift …i seen an arnnold truck pulling a us express ..the best part of this whole thing was usa trucking was a corporate ran ..they pushed out the people who new how to make a trucking company make money and they replaced them with college graduates ..under ten years there bankrupt ..rescission didnt bankrupt them poor management. did that ..years back they took a big loan paid off the rich stock holders then they spent the rest of time watching it crash.. they past out soo much money most of the originals stock holders took there money and started there own small companys

  • guest

    Yep..USA is a dump..run by CROOKS…they havent earned a Profit for so long nobody can remember….what a hell hole…horrible DIVE of a company….Wells Fargo owns ALL their trucks and assets according to articles posted about this SHAM company….Celadon became DISGUSTED with these Jerks…and took their offer off the table…THEY were smart!
    This may be the downfall of Knight….USA TRUCK is a Cancer on the Butt of the trucking industry…..lol

  • Jason Haggard

    Years ago many of us said that the goal of the government and the large carriers was to consolidate everything into a few mega carriers and drive the wages down and people called us crazy dumb truck drivers. Not all truck drivers may know quantum physics but they sure as hell know their industry because their prophetic words are coming to fruition.

  • Albert Merrill

    Look what it did to the aviation industry!!!!

  • beverduster

    cant wait for them to go belly up, the ass hole of the trucking industry

  • diver64

    Jason is right. Over 20yrs ago when I started driving for Swift I took a look at what the major carriers were doing with buying smaller companies, having all divisions of freight in-house (reefer, flatbed, container etc..), putting trailers on trains and predicted that when all was said and done there would be a handful of large carriers and some small specialized carriers that hauled stuff like explosives and coast to coast for anything but teams on sensitive freight would be a thing of the past. Solo’s would haul local, regional or out of ports and that would be it. With the influx of Mexican Drivers and Amnesty wages would be driven way down.
    I was not far off. It’s taken longer than I thought but it’s pretty much here. Thankfully I made it a point to learn how to drive any equipment out there and have all endorsements and TWIC/Passport and so on.

    The days of the solo driver running for weeks coast to coast are about over. Everyone should get used to it and adapt to the new or get out of the industry. I, on my part, never recommend that anyone enter the industry.

  • diver64

    My girlfriend works as a dispatcher/office person for one of the largest carriers in the nation on a dedicated account. Not one of the office people or any of the corporate people she has met have ever driven a truck and the overwhelming majority of them not only don’t know a truck driver personally they have not even ridden in a truck. All are college guys that take business courses and know “how it’s supposed to run” without realizing that Trucking is a business unlike any other. At least she has ridden with me a number of times and listened to me for several years now so has an idea what is going on out there.
    When she started working in the office I insisted that she go out on various runs with me to see what it was like and I’ve always thought that “ride alongs” should be mandatory for every employee a couple of times a year.
    The company had an opening for a terminal safety director. I applied having a college degree and over 2.5Million miles of accident and ticket free driving and having run about everything out there except explosives. They hired some college kid who has never been in the industry in any form. That is the problem right there.

  • jonp

    The price of a companies stock has much more to it than what you are saying including the float.

  • jonp

    USA is one of the companies I have not heard much good about anywhere in the country. USA, Heartland come right to mind.