Dive Brief:
- Knight-Swift Transportation Holdings acquired Dependable Highway Express, an LTL carrier with operations in California, Nevada and Arizona, according to an announcement Tuesday.
- Terms were not disclosed. The deal brings DHE’s 600 employees and 14 service centers into Knight-Swift’s growing LTL unit, which the freight giant launched with its acquisition of AAA Cooper Transportation in 2021.
- Los Angeles-based DHE, acquired from Dependable Supply Chain Services, will be rebranded to DHE Transportation.
Dive Insight:
The deal fits Knight-Swift’s strategy of acquiring regional carriers in the Southwest and Northeast to build out a nationwide, in-house LTL network by 2026.
The foothold that DHE provides Knight-Swift in the Southwest will deliver value beyond regional shipments in the three states where the carrier operates terminals.
DHE offers three- to five-day shipping to the East Coast, according to its website. It also offers two- to five-day service to Southern and Southeastern states, as well as the Pacific Northwest and Mid-Central states.
Knight-Swift’s LTL unit was a bright spot last quarter as the parent company’s overall operating income cratered by 32.5%, attributed to a $12.5 million auto liability claim settlement from 2020.
CEO Adam Miller promised investors the company would pounce on any opportunity to expand the LTL division during an earnings call last week.
“We’ll be very quick to pull the trigger on that,” Miller said.
