Jerry Moyes buys out Swift, Good or Bad for drivers?

[greg3564]

So, is this good or bad for Swift?

PHOENIX, AZ, Jan 19, 2007 (MARKET WIRE via COMTEX News Network) -- Swift Transportation Co., Inc. (NASDAQ: SWFT) announced today that it has entered into a definitive merger agreement with an entity formed by Jerry Moyes, the Company's largest shareholder, a current Director, and former Chairman of the Board and CEO of Swift, pursuant to which Mr. Moyes and certain of his family members will acquire Swift in an all-cash transaction valued at approximately $2.74 billion. This includes the assumption of approximately $332 million of net debt.
Under the terms of the agreement, Swift stockholders will receive $31.55 in cash for each outstanding share of Swift common stock. This represents a premium of approximately 31 percent from the closing price of Swift stock on Friday, November 3, the last trading day before Mr. Moyes made an initial proposal to acquire the Company for $29.00 per share.

Jerry Moyes said, "Swift, which I founded in 1966 as a small company with a strong entrepreneurial spirit, has evolved into the operator of the largest truckload fleet in the United States with a dedicated and energetic team of employees, over 17,900 trucks and nearly $3.2 billion in revenues. I am extremely pleased to have reached this agreement with Swift and look forward to building on the unique Swift legacy that has positioned the Company for continued growth and success."

Jock Patton, Chairman of the Company's Board of Directors and Chairman of the Special Committee, commented, "After careful consideration, and in close consultation with our financial and legal advisors, the Special Committee, which is composed of three of the Board's independent directors, and full Board (other than Mr. Moyes) unanimously approved the transaction. We believe the all-cash $31.55 per share price represents a fair value for the Company and is in the best interest of all shareholders."

The transaction is subject to review by regulatory agencies under the Hart-Scott-Rodino Antitrust Improvements Act, approval by Swift stockholders, and other customary closing conditions. The transaction is expected to be completed during the second quarter of 2007. Mr. Moyes has received commitments from Morgan Stanley for debt financing for the transaction.

Goldman, Sachs & Co. acted as financial advisor to the Special Committee. Sullivan & Cromwell LLP served as legal advisors to the Special Committee.

Morgan Stanley acted as financial advisor and Skadden, Arps, Slate, Meagher, & Flom LLP and Scudder Law Firm, P.C. acted as legal advisors to Mr. Moyes. Mayer, Browne, Rowe & Maw LLP acted as legal advisors to Morgan Stanley.

Swift is the holding company for Swift Transportation Co., Inc., a truckload carrier headquartered in Phoenix, Arizona. Swift's trucking subsidiary operates the largest fleet of truckload carrier equipment in the United States with regional operations throughout the continental United States.

[Kintama]

I worked there in 97 and 98 with Jerry in charge, and I never had any problems.

[Useless]

Well, to say the very least, very few drivers prospered under Moyes, and I don't think very many will in the days to come!!

[BigDawg]

hereis another link to Moyes regaining Swifty

http://www.azcentral.com/news/articl...swift0121.html

[homer]

in landline magazine a stock anayl;st from one of those big outfits said jerry taking control is more ego than economicly motivated. used to get statements for years from swift retirement plan saying i had 1000 $ vested in there.call them up and they say you didnt have 5 years so were gonna keep it. 1000$ per driver for all these years that alot of cash. never signed up for it .got too much of a life to fight them for years im sure they needed it

[classicxl]

i wonder if with Jerry back will drivers still get the million dollars and use of a new truck free for a year

[Kintama]

Well, to say the very least, very few drivers prospered under Moyes, and I don't think very many will in the days to come!!

Probably not, but the company was never a place someone would want to work for a long time.

[kips41]

Jerry Moyes is not a friend of the driver or the industry. He has done more to bring down frieght rates and drivers' wages than any other single individual in the trucking industry.

It is quite clear that his only goal was to have the largest trucking company out there for his own benefit and to hell with everyone else including his employees. I have no idea why anyone would want to work for him.

I was working for Central Freight Lines ( LTL carrier based in Waco, TX).
I watched as he and his group of cronies destroyed that company.

I hope that he goes belly up one day. I would dance in the street butt naked.....although I'm sure not too many would appreciate that.

So that's how I really feel about it.

[danj_otr]

I noticed a change when Jerry left, mechanics where getting fired, terminals where shut down, and life with the company just plain sucked for myself and other drivers that I know.

[Bumper]

I guess this means we can start calling Swift drivers "Jerry's Kids" again...

[danj_otr]

I guess this means we can start calling Swift drivers "Jerry's Kids" again...

Yeah, I guess so. He went out just after I started, and he came back in after I left. Who knows what is going happen now... Oh well, don't work for Swift any more, so I guess I shouldn't worry :wink:

[Skullitor]

Maybe a return to Freightliner?No more Sweedish Petes ? 8)

[Sheepdancer]

This is a good thing for JB Hunt believe it or not. His buy out means that JB is now the #1 publicly traded trucking company. Things like that matter to the investors and the customers. Which equates to good things like more freight and my company stock.

[Orangetxguy]

Wow...I find it hard to believe that a Customer would care one tiny bit, whether a Trucking company was :shock: "Investor-owned" or :arrow: "Family-owned" :!: :!:

I would think the customer would be more concerned with the services provided.


Just my opinion


:moose:

[Sheepdancer]

it does matter to customers a little. I wouldnt call it mattering a lot. Really it comes down to things like this. When our account managers are out there trying to get freight, being able to say things like "we are the number 1 publicly traded trucking company in the nation" would be a valuable sales tool and would equate to being able to get more freight. Everything positive matters in sales.
As far as investors, companies at the top of a sector are usually used as the benchmark to measure the entire industry. Which is a great thing.

[feederfred]

The business "buzz" in Phoenix is that because the industry as a whole is in a slump right now, that Moyes is just "buying low" and will hold on to it for a couple years and then re-sell in a year or two when the business returns. Must need more cash for another house in Paradise Valley.....

[kips41]

You gotta be kidding. Publicly traded JB Hunt vs Swift.

Both known to be cut throat in cutting frieght rates.

The only thing that matters to their customers is how much does it
cost to have it hauled and is the service good enough to keep the
shipper's customer off their back.

It is not like Swift is some no name start up company.

[OverTheRoad]

Good for Jerry..... good old fashion entrepreneur.
Now maybe him and Walt will merge and really piss you guys off.

[danj_otr]

Maybe a return to Freightliner?No more Sweedish Petes ? 8)

Not likely! Look on the web for why Freightliner axed the contract with Swift. Something about filing warranty claims on non-warranty parts, and Freightliner caught on to it...

It is a toss up either way because I liked both for different reasons.

[OverTheRoad]

I was thinking..... Why would Jerry want to buy out the stockholders and go private. That sounds like the last act of a desperate man. We might be seeing the end of Swift as we know it.
When was the last time you heard of or saw a huge Public company buyout their stockholders and go private. That is backward, its the opposite way of doing things.