Swift, M.S. Carriers to Merge

Truckload carriers Swift Transportation Inc. (SWFT)and M.S. Carriers, Inc. (MSCA) announced a merger late Monday. The deal will make M.S. Carriers a wholly-owned subsidiary of Swift, the companies said.

In the deal, 1.7 shares of Swift stock will be exchanged for each share of M.S. Carriers stock. Based on Monday’s closing prices, M.S. Carriers stockholders would receive $34.32 for each share they own, valuing the company at over $384 million - a 52% premium over Monday’s closing prices.

The merger, which is pending antitrust and stockholder clearance, will create the nation's second-largest, publicly traded truckload carrier in terms of revenue behind J.B. Hunt Transport Service of Lowell, Ark. The companies’ partnership will combine their respective regional strengths, with Swift having strong operations on the West Coast and M.S. Carriers having strength on the East Coast.

Both companies have reported a very profitable year. For the nine months ending Sept. 30, Swift had a net income of $42.5 million, while M.S. Carriers had a net income of $14.9 million. Together, the company noted in their announcement, they estimate 2000 revenues to reach $2 billion.

Phoenix-based Swift is ranked 19th in the Transport Topics 100, while Memphis-based M.S. Carriers is ranked 23rd.