Jerry Moyes, one of the biggest names in trucking, bought 8% of ailing Simon Transportation stock for $2.4 million, fueling speculation that his company, Phoenix-based Swift Transportation, may have its sights on a “creeping acquisition” of Simon or that Moyes may be setting the stage for the consolidation of several publicly owned refrigerated carriers.
“Management is pleased if Mr. Moyes thinks Simon is a good investment,” said Alban Lang, chief financial officer at Simon. “But this is a personal investment. It has nothing to do with Swift Transportation.”
Well known in the truckload sector as a master of acquisitions, Moyes paid $1.1 million over the past two months for 233,550 shares of the refrigerated carrier’s Class A stock. The stock was bought with funds from the private Jerry and Vickie Moyes Family Trust.
Moyes also acquired additional shares in Simon when Salt Lake City-based SME Steel Contractors-Utah, 75% of which Moyes owns, paid $1.3 million for 300,000 shares over the last month.
“I just feel Simon stock at this price was a very good investment,” Moyes said.
he transactions give Moyes control of 533,550 shares, or 9.9%, of Simon’s Class A stock. Since company patriarch Richard D. Simon owns all 913,751 shares of the Class B stock, which gets two votes for each share, he has more than 25% of the voting power.
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