Schneider National, a major player in the U.S. trucking industry, has announced its acquisition of Baltimore-based Cowan Systems for $390 million. The deal, expected to close by the end of 2024, significantly enhances Schneider’s dedicated trucking operations and aligns with its long-term growth strategy.
Strengthening Schneider’s Dedicated Fleet
Schneider, headquartered in Green Bay, Wisconsin, ranks ninth on the Transport Topics Top 100 list of for-hire carriers in North America. In 2023, the company generated nearly $5.5 billion in revenue from its fleet of 10,600 tractors. Cowan Systems, which ranks 63rd on the same list, earned $670 million in revenue from its fleet of approximately 2,400 tractors.
The acquisition will increase Schneider’s dedicated fleet to over 8,400 tractors, representing 70% of its truckload segment. Schneider CEO Mark Rourke emphasized the strategic value of the acquisition, stating, “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.”
Cowan Systems’ Legacy and Expertise
Cowan Systems, founded in 1924, operates across more than 40 locations in the Eastern and Mid-Atlantic U.S. The company specializes in lightweight equipment that helps customers reduce costs and emissions. It serves industries such as retail, food and beverage, and building materials.
Joe Cowan, Chairman of Cowan Systems, expressed confidence in Schneider as a partner capable of preserving and expanding his company’s legacy. “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,” Cowan said. He added, “With Schneider, I know our legacy will not just be preserved, but it will continue to thrive.”
Funding and Financial Impact
Schneider plans to fund the acquisition through its cash reserves and a $400 million credit facility. The company expects the deal to enhance earnings within the first year, excluding potential cost savings. Once the transaction is finalized, Cowan Systems’ financial results will be incorporated into Schneider’s Truckload and Logistics segments, further solidifying its position in the dedicated trucking market.
Recent Acquisitions and Broader Strategy
The Cowan Systems acquisition follows Schneider’s recent purchases of Midwest Logistics Systems and M&M Transport Services, reflecting its continued investment in dedicated trucking solutions. By integrating Cowan’s operations, Schneider strengthens its position as one of the largest dedicated trucking providers in the U.S., broadening its service capabilities and geographic reach.
This strategic move underscores Schneider’s commitment to enhancing its customer-focused solutions while leveraging its scale to deliver greater operational efficiency and value.
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