Schneider Expands Dedicated Fleet Through Cowan Acquisition and Considers Further M&A Opportunities
Schneider National, a major player in the transport and logistics industry, is making moves to expand its dedicated fleet by acquiring Cowan Systems. This deal, valued at $390 million plus an additional $31 million for real estate assets, is set to strengthen Schneider’s footprint in the eastern and mid-Atlantic US regions where Cowan operates across 40 locations.
Cowan is known for providing dedicated service to clients in various industries, including retail, food and beverage, and industrial and building materials. With a fleet of 1,800 trucks, 7,500 trailers, and a network of 500 owner-operators, Cowan reported revenues of $670 million last year.
The acquisition is expected to close by the end of the year, with Cowan operating as a wholly owned subsidiary under its own brand name. Schneider’s management anticipates cost synergies from integrating administrative and support functions.
Schneider’s commitment to customer-centric dedicated solutions is reflected in CEO Mark Rourke’s statement about the acquisition aligning with the company’s long-term vision. With the addition of Cowan, Schneider’s dedicated fleet will consist of 8,400 tractors, making them one of the leading dedicated transport providers in the US and bringing their dedicated volume close to $2 billion annually.
Despite a 3% drop in overall revenues in the last quarter, Schneider’s dedicated business has been steadily growing year over year. Mr. Rourke mentioned plans for further expansion in the dedicated trucking segment, indicating a continued focus on both organic growth and potential future acquisitions. Schneider is on the lookout for opportunities to enhance its presence and value proposition for customers and stakeholders moving forward.
