GREEN BAY, Wisc. — Schneider National Inc. has agreed to acquire Cowan Systems LLC, according to a Nov. 25 statement issued by Schneider.
The cash purchase price is stated as approximately $390 million (certain to adjustments). The sale includes separate agreements to purchase certain real estate assets relating to Cowan Systems’ business for approximately $31 million in cash.
Founded in 1924 and based in Baltimore, Maryland, Cowan Systems is primarily a dedicated contract carrier with a portfolio of complementary services including brokerage, drayage and warehousing. Cowan Systems’ Dedicated customers include leading producers of retail and consumer goods, food and beverage products, industrials, and building materials.
Cowan operates approximately 1,800 trucks and 7,500 trailers across more than 40 locations throughout the Eastern and Mid-Atlantic regions of the U.S.
According to Schneider’s Nov. 25 statement, the acquisition will further complement Schneider’s dedicated organic growth success. Including Cowan Systems, Schneider will operate over 8,400 dedicated tractors — approximately 70% of Schneider’s truckload fleet — “cementing its place as one of the largest dedicated providers in the transportation industry,” the statement notes.
“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.
“We look forward to collaborating with the talented team at Cowan Systems to drive our now shared mission forward,” he continued.
Upon closing, Cowan Systems will operate as a wholly owned subsidiary of Schneider, continuing a successful trajectory with its associates and trusted brand.
“My father started Cowan Systems more than 100 years ago, and with the expertise, passion and dedication of so many amazing employees along the way, it has grown in more ways than he could have ever imagined,” explained Cowan chairman Joe Cowan.
“When it was time for me to move to a new chapter in my life, I 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,” he said. “With Schneider I know our legacy will not just be preserved, but it will continue to thrive.”
The acquisition is expected to be accretive to Schneider’s earnings per share within the first year, before consideration of anticipated synergies. The transaction is expected to close in the fourth quarter of 2024, subject to the satisfaction of certain customary closing conditions, and it will be financed through existing cash on hand as well as borrowings under Schneider’s new $400 million delayed draw term credit facility.
Upon closing, Cowan Systems’ financial results will be reported in their corresponding Schneider truckload and logistics business segments. This transaction follows earlier acquisitions of Dedicated contract carriers Midwest Logistics Systems and M&M Transport Services, LLC, which are also wholly owned subsidiaries of Schneider.
Scopelitis, Garvin, Light, Hanson & Feary served as Schneider’s legal advisor. Stifel Financial Corp. served as exclusive financial advisor to Cowan Systems and Scudder Law Firm served as their legal advisor on the transaction.
Linda Garner-Bunch has been in publishing for more than 30 years. You name it, Linda has written about it. She has served as an editor for a group of national do-it-yourself publications and has coordinated the real estate section of Arkansas’ only statewide newspaper, in addition to working on a variety of niche publications ranging from bridal magazines to high-school sports previews and everything in between. She is also an experienced photographer and copy editor who enjoys telling the stories of the “Knights of the Highway,” as she calls our nation’s truck drivers.
