Schneider National is slated to buy Cowan Systems in Q4, according to a securities filing.
The Wisconsin-headquartered carrier will acquire essentially all of the Baltimore-based company and affiliated entities for about $390 million, subject to certain adjustments, the company announced Monday.
“This acquisition will further complement our organic Dedicated growth success, as well as what has been achieved with the additions of Dedicated contract carriers Midwest Logistics Systems and M&M Transport to our enterprise,” President and CEO Mark Rourke said on LinkedIn.
With the addition, Schneider will operate over 8,400 dedicated tractors, approximately 70% of its TL fleet, according to a news release.
The carrier will also approach $2 billion in annual dedicated contract revenues, Rourke wrote.
The deal will also involve an additional $31 million for Cowan real estate assets.
Cowan Chairman Joe Cowan said it was time for a new chapter, but he wanted to “be sure the organization was in good hands, at a company with a similar culture and values, and that it would continue to grow,” the release said.
Like Schneider, Cowan offers intermodal, brokerage and logistics services. But Cowan is concentrated along the East Coast, and cost synergies are expected by integrating administrative and support functions, a Schneider presentation said.
Cowan will continue under its existing brand name, the presentation said.
Schneider will incrementally borrow up to $400 million from Bank of America to finance a portion of the deal.
source:https://www.truckingdive.com
