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Dive Brief:
- Knight-Swift Transportation Holdings is prepared to pay about $2.2 million to acquire 10 Yellow Corp. leases, according to bankruptcy court filing on Monday.
- The properties are primarily located in the western US, with three in Idaho, two in Colorado, two in Kansas, one in Missouri and one in Nebraska. Another property is located in Georgia.
- The price could change based on an ongoing review of certain maintenance and repair items, according to the filing.
Knight-Swift buys assets of Yellow
Purchased and leased properties the carrier has acquired or is acquiring.
Dive Insight:
The companies have spent nearly $2 billion acquiring Yellow properties for its strategic terminal assets, selling 128 properties and 25 leases.
Knight-Swift, traditionally in the truckload business, entered the LTL sector in 2021 and is looking to grow the business to provide domestic domestic service by the end of 2025.
The carrier previously took two USF Reddaway leases, in Montana and Washington, and 13 purchases as part of Yellow’s bankruptcy process at auction.
As of Monday, Yellow had 108 leased properties and 46 owned properties that it is still seeking to sell, according to the court filing.
During a fourth-quarter earnings call in January, CEO and President David Jackson reiterated that Knight-Swift’s LTL expansion remains a strategic priority.
“Filling a hyper-regional network in the short-term and building a national network in the long-term will allow us to participate in more freight traffic and allow us to find opportunities to further support our existing truckload customers with LTL capacity.” he said.