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Yellow | Knight-Swift buys 10 more Yellow terminals for $2.2 million as LTL push continues

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Knight-Swift buys 10 more Yellow terminals for $2.2 million as LTL push continues​

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Knight-Swift is acquiring LTL terminals that fill gaps in its current network of about 115 facilities. Photo credit: Kingfishcafe / Shutterstock.com.

William B. Cassidy, Senior Editor | Feb 13, 2024, 12:25 PM EST

Knight-Swift Transportation Holdings, the largest US truckload operator, is raising its stake in the less-than-truckload (LTL) game by acquiring 10 additional terminals from bankrupt Yellow for $2.2 million.

The latest Knight-Swift terminal purchases were announced Monday in a notice filed by Yellow in the Delaware Bankruptcy Court.
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The new terminals are a major building block in Knight-Swift’s plans for a national LTL network. The company now has 35 terminals in various stages of procurement, development or reconditioning, including25 terminals acquired from Yellow.






There’s no doubt Knight-Swift sees lots to love in LTL. “By the end of 2025, we’re [going to be] able to show you a map that makes it very clear we’re a nationwide LTL network,” CEO David Jackson said during a Jan. 24 earnings call with Wall Street analysts.






With its latest real-estate deals, Knight-Swift joins the largest beneficiaries of thecollapse of Yellow and its terminal auction — XPO, Estes Express Lines and Saia. All have acquired more than 20 terminals from Yellow.






Knight-Swift is building the first new nationwide LTL network since Con-way Freight,now XPO, was assembled in the 1980s. The plan is to diversify its business and make it less reliant on long-haul truckload.



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Knight-Swift has now spent $53.9 million in three rounds of bidding for Yellow terminals. The acquisitions announced Monday are mainly in the West and Midwest — Missouri, Kansas, Colorado, Nebraska and Idaho, with one exception in Georgia.






The 35 terminals acquired or under development, including 10 non-Yellow properties, will be added to a network of approximately 115 LTL terminals operated by Knight-Swift subsidiaries AAA Cooper Transportation (ACT) and Midwest Motor Express (MME).






Since acquiring ACT and MME in 2021, Knight-Swift has been integrating the two autonomous companies’ systems to create a single, multiregional LTL offering. That offering will look more national in a few years, Knight-Swift executives say.






The Yellow terminals “have been wonderful gifts for us,” Jackson said during the late-January earnings call. If Knight-Swift had to buy land and build from the ground up, “we would have had a much more significant capital investment,” he said.

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Filling the gaps​


Knight-Swift’s plan has been to use new terminals to fill in coverage gaps in the ACT and MME networks.






The holding company has 12 terminals under development in the Midwest, including facilities in Illinois, Indiana, Michigan and Wisconsin — areas formerly covered by Yellow subsidiary Holland. Other terminals are being prepared in the Pacific Northwest and South.






Knight-Swift opened five LTL terminals in January and said it plans to get most of the other new sites up and running again this year.






The other shoe waiting to drop is further acquisitions in the LTL sector; Knight-Swift reportedly has looked at several acquisition candidates.



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EX396 said:
An average of $220k each is a steal. Can't believe that was the highest bid. I would hope some larger creditors object and/or the BK judge doesn't approve. There's got to be more to the story...
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Not really. There's very few things you can do with a former truck dock. Given the downswing in the economy and lower shipping volume in general, it's not shocking that they were so cheap. In all likelihood, their value is nothing mkre than the real estate they're on. Terminal itself probably has no value.
 
wongway said:
10 additional terminals from bankrupt Yellow for $2.2 million. ?? WOW that was a Cheap price , wonder if "Jamie" is helping Knight-Swift with financing the deal ??
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Wong, it may be a good price but please be aware Knight-Swift isn't buying the properties "lock, stock and barrel"; they are buying the lease rights to those facilities. See docket # 2158
 
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No F-bdy Bs said:
Not really. There's very few things you can do with a former truck dock. Given the downswing in the economy and lower shipping volume in general, it's not shocking that they were so cheap. In all likelihood, their value is nothing mkre than the real estate they're on. Terminal itself probably has no value.
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Even just the land value with utilities on site is worth much more than that. Maybe some mandatory environmental cleanup for new owner is factored in...
 
Freightmaster1 said:

Knight-Swift buys 10 more Yellow terminals for $2.2 million as LTL push continues​

mail

Knight-Swift is acquiring LTL terminals that fill gaps in its current network of about 115 facilities. Photo credit: Kingfishcafe / Shutterstock.com.

William B. Cassidy, Senior Editor | Feb 13, 2024, 12:25 PM EST

Knight-Swift Transportation Holdings, the largest US truckload operator, is raising its stake in the less-than-truckload (LTL) game by acquiring 10 additional terminals from bankrupt Yellow for $2.2 million.

The latest Knight-Swift terminal purchases were announced Monday in a notice filed by Yellow in the Delaware Bankruptcy Court.
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Socal media will go crazy when this happens, they can’t drive a straight line without making headlines.
 
Real Teamster said:
Wong, it may be a good price but please be aware Knight-Swift isn't buying the properties "lock, stock and barrel"; they are buying the lease rights to those facilities. See docket # 2158
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Ok , so then wonder who will fix all the broken stuff and cleanup any hazmat yard stuff from leaking fuel tanks & oil spills & the piles of Line Haul driver crap , where they took dumps in the yard ??
 
wongway said:
Ok , so then wonder who will fix all the broken stuff and cleanup any hazmat yard stuff from leaking fuel tanks & oil spills & the piles of Line Haul driver crap , where they took dumps in the yard ??
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Whoever agrees to do it when they negotiate the purchase contract. If and when I ever decide to sell my house the buyer will be responsible for removal of my buried fuel oil tank or else no sale. You want my house, you take out the tank, or else go away.
 
Triplex said:
Whoever agrees to do it when they negotiate the purchase contract. If and when I ever decide to sell my house the buyer will be responsible for removal of my buried fuel oil tank or else no sale. You want my house, you take out the tank, or else go away.
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I guess there’s a huge cleanup underway around 309 all the mirror debris not sure who’s paying for that
 
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