Changes, Changes, Changes

Topic 32225 | Page 2

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Noob_Driver's Comment
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Interesting. I've always wondered about what motivates one carrier to sell out to another. I believe it's either a mutually beneficial merger or one company trying to keep from going bankrupt. Any other reasons?

I cant speak for Smith selling to heartland or cfi (although I do believe that was strictly buisness from what I've read so far.) Millis sold for personal reasons unfortunately. The founder left the company to his sons and family who have ran it for years successfully and really grew it well. But they're getting older and want to retire and noone in the next generation had any interest in running it. There was no significant financial burdens looming that meant bankruptcy we have established contract freight with beer, white claw and carpeting and flooring to keep us afloat on fluctuating spot markets. The board members just didnt want to run it when the CEO and president retired so they took the cash.

Papa Pig's Comment
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Does that mean a name change? (Heartless express’s biggest fan?)

George B.'s Comment
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Does that mean a name change? (Heartless express’s biggest fan?)

Ha!!!!

Old School's Comment
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These kind of changes take place fairly regularly. I think it's silly to believe stock holders are pressuring these companies for more profits. Sure, the publicly traded trucking companies have many different owners, but the primary stockholders are typically family members who took the company public in the first place. They own the majority of shares and they call the shots.

I have considerable (for me) funds in the stock markets. I never dream of having any influence over those companies I'm involved with. I expect them to perform well, but if they can't I simply move on. Having stock in a commodities business like trucking means an investor knows the profits will be slim. Many investors in commodities are more interested in growth than profit. There are a lot of things to consider when investing in public companies. Cash flow is a very critical component when I examine a place to invest funds.

When Knight and Swift merged everyone was debating over which company bought the other. The fact was that neither bought the other. It was simply a merger that kept the family wealth from being split up or destroyed in the uncertain future. It was a smart move orchestrated by family members who had controlling interests by their large numbers of shares.

I remember Swift drivers talking to me at truck stops immediately following the news and saying, "Welcome to the family!" I knew they didn't have a clue. Here we are years later and I'm still working for Knight while they still work for Swift. It was a marriage of convenience to keep the families wealth in the families control.

There's nothing for Big Scott to fear. Things will continue on as they were. The same goes for any of you who find your employer being purchased by another. Sometimes there are issues that arise, but typically these transactions don't affect the drivers.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OWI:

Operating While Intoxicated

Anne A. (and sometimes To's Comment
member avatar

double-quotes-start.png

Does that mean a name change? (Heartless express’s biggest fan?)

double-quotes-end.png

double-quotes-start.png

Ha!!!!

double-quotes-end.png

Seriously; Heart of the Land .. ?!? Might be the new name?!?!? Or... the 'original' of course.... Anne & Nancy!

HeartLESS?!?!?

Seriously...this'll be interesting, at best. Maybe this will Even it Up ~ !!

Following, to all & any, with info.... except for Nancy!

~ Anne ~

ps: Jokes aside, (sorry BK!) .. this is quite interesting, for sure. More than the FX/LH largest contractor, selling out. What a WOW in the industry lately, eh?

OWI:

Operating While Intoxicated

G-Town's Comment
member avatar

I’m bumping Old School’s concise reply. I suggest everyone read it; interesting, accurate and a scenario played out before.

In addition to the family dynamics, economies of scale is always an objective in any M/A. The purchasing power alone is enough to justify the Knight/Swift merger.

Knight/Swift Merger; Lessons From the Shipping Industry

I lived through the Knight/Swift merger, as did Old School. With the exception of a new look brand, nothing changed for me. Sure drivers talked, alarming every unsuspecting newbie of the impending doom… however none of their predictions came to fruition. Surprised? Don’t be… the drivers who know the least, talk the most.

Carry on.

These kind of changes take place fairly regularly. I think it's silly to believe stock holders are pressuring these companies for more profits. Sure, the publicly traded trucking companies have many different owners, but the primary stockholders are typically family members who took the company public in the first place. They own the majority of shares and they call the shots.

I have considerable (for me) funds in the stock markets. I never dream of having any influence over those companies I'm involved with. I expect them to perform well, but if they can't I simply move on. Having stock in a commodities business like trucking means an investor knows the profits will be slim. Many investors in commodities are more interested in growth than profit. There are a lot of things to consider when investing in public companies. Cash flow is a very critical component when I examine a place to invest funds.

When Knight and Swift merged everyone was debating over which company bought the other. The fact was that neither bought the other. It was simply a merger that kept the family wealth from being split up or destroyed in the uncertain future. It was a smart move orchestrated by family members who had controlling interests by their large numbers of shares.

I remember Swift drivers talking to me at truck stops immediately following the news and saying, "Welcome to the family!" I knew they didn't have a clue. Here we are years later and I'm still working for Knight while they still work for Swift. It was a marriage of convenience to keep the families wealth in the families control.

There's nothing for Big Scott to fear. Things will continue on as they were. The same goes for any of you who find your employer being purchased by another. Sometimes there are issues that arise, but typically these transactions don't affect the drivers.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OWI:

Operating While Intoxicated

PJ's Comment
member avatar

These things always start more rumors than anything else. Celadon bought up a few smaller carriers years ago to expand their customer base, then the CEO ripped the company blind, and they went out of business.

Quality Distribution went through this. They originally consisted of Quality Carriers, Boasso, and Quala. They bought a small carrier in northern IL and midwest systems.

Then 2 years later sold Quality Carriers to CSX Railroad and Boasso went their own way. I’m not sure what happened to the rest. They bought, sold, and rebought Quala.

Each time nothing really changed day to day. After the first year of the CSX buyout they decided to buyout all the affiliate carriers. That has been a big change and not for the better in my opinion as a driver. Probably is viewed by CSX as a more profitable scenario.

Banks's Comment
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I'm thinking about buying 2 trucks and selling my company to heartland rofl-1.gif rofl-2.gif

BK's Comment
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I'm thinking about buying 2 trucks and selling my company to heartland rofl-1.gif rofl-2.gif

Banks, that comment is hilarious. I love it!

RealDiehl's Comment
member avatar
the drivers who know the least, talk the most.

That little nugget of wisdom is priceless...in Trucking and in many other walks of life👍

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