Zinger Key Points
- Schneider National will acquire Cowan Systems for approximately $390M plus $31M for related real estate assets.
- The acquisition strengthens Schneider’s multimodal transportation and logistics services portfolio.
Schneider National, Inc. SNDR disclosed that it has agreed to acquire Cowan Systems, LLC and its affiliates for approximately $390 million in cash, subject to adjustments.
The deal also includes a separate purchase of related real estate assets for $31 million.
Cowan Systems is primarily a dedicated contract carrier with a portfolio of complementary services including brokerage, drayage and warehousing. The company operates approximately 1,800 trucks and 7,500 trailers across more than forty locations throughout the Eastern and Mid-Atlantic regions of the U.S.
Including Cowan Systems, Schneider will operate over 8,400 Dedicated tractors, approximately 70% of Schneider’s Truckload fleet.
The acquisition is expected to be earnings accretive for Schneider within the first year, excluding anticipated synergies.
The transaction is expected to close in the fourth-quarter 2024, pending customary conditions, and will be financed through existing cash and a new $400 million delayed draw term credit facility.
Post-acquisition, Cowan Systems’ financials will be integrated into Schneider’s Truckload and Logistics segments.
This deal follows previous acquisitions of Midwest Logistics Systems and M&M Transport Services, reinforcing Schneider’s growth in Dedicated contract carriage.
“This acquisition aligns with Schneider’s long-term vision to have customer-centric Dedicated solutions as the cornerstone of its Truckload segment. By complementing our organic Dedicated growth success with transactions like this, we are broadening our presence to provide greater value to our customers and stakeholders,” said Schneider President and CEO Mark Rourke.
As of September 30, 2024, the company had cash and cash equivalents of $179.0 million.
Investors can gain exposure to the stock via Tidal ETF Trust Aztlan North America Nearshoring Stock Selection ETF NRSH.
Price Action: SNDR shares are up 2.10% at $32.28 at the last check Monday.
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