By Lisa Kerner
Charlotte, N.C., Jan. 22 - Swift Transportation Co., Inc. entered into a definitive merger agreement with its largest shareholder and former chief executive officer Jerry Moyes and certain Moyes family members to acquire the company in an all-cash transaction worth an estimated $2.74 billion, including assumption of $332 million in net debt.
The agreement calls for Swift stockholders to receive $31.55 for each outstanding share of Swift common stock, up from Moyes' initial proposal of $29.00 per share on Nov. 6.
In addition, the agreement includes a termination fee of $40 million, according to an 8-K filing with the Securities and Exchange Commission.
Swift's board has unanimously approved the transaction, which is expected to close during the second quarter of 2007.
Moyes has received commitments from Morgan Stanley for debt financing for the transaction, the release stated.
Swift, founded by Jerry Moyes in 1966 and based in Scottsdale, Ariz., operates a fleet of more than 17,900 trucks and has nearly $3.2 billion in annual 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," Moyes said in the release.
| Acquirer: | Jerry Moyes and family
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| Target: | Swift Transportation Co., Inc.
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| Payment per share: | $31.55 per share
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| Termination fee: | $40 million
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| Announcement date: | Nov. 6
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | Nasdaq: SWFT; $27.74 on Jan. 19
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