ASHWAUBENON, WI (WTAQ-WLUK) — One of Northeast Wisconsin’s largest employers says it has entered a definitive agreement with a Baltimore company.
Schneider National, Inc. is set to acquire Cowan Systems, LLC and affiliated entities (collectively, “Cowan Systems”), for a cash purchase price of approximately $390 million, subject to certain adjustments.
The sale includes separate agreements to purchase certain real estate assets relating to Cowan Systems’ business for approximately $31 million in cash.
Cowan Systems’ dedicated customers include leading producers of retail and consumer goods, food and beverage products, industrials, and building materials. 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 United States.
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.
“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.”
The transaction is expected to close in 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.
Comments