Swift founder takes back control of trucking giant

PHOENIX, Ariz. — Swift Transportation, one of North America’s largest for-hire carriers, 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, who stepped down in 2005 after allegations of insider trading.

Moyes and some family members will acquire Swift in an all-cash transaction valued at about $2.74 billion. This includes the assumption of approximately $332 million of net debt.

In November, Phoenix-based Swift Transportation turned away a $2.2 billion offer (all-cash $29-per-share) from Moyes, calling the proposal “inadequate.”

Under the terms of the agreement, Swift stockholders will receive $31.55 in cash for each outstanding share of Swift common stock.

“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,” Moyes said. “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, said, “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 Moyes) unanimously approved the transaction.”

Moyes, who is also majority investor in the Phoenix Coyotes NHL team, and is a partner in baseball’s Arizona Diamondbacks, paid $1.25 million to the U.S. Securities and Exchange Commission in September 2005 to settle the insider trading case.