Schneider National Acquires Cowan Systems for $390 Million

By Tamara Parker • Monday, November 25 16:31 • Permanent Link

Schneider National, Inc. (NYSE: SNDR) has announced its acquisition of Cowan Systems, LLC and affiliated entities for a cash purchase price of approximately $390 million, subject to certain adjustments. This acquisition includes separate agreements to purchase certain real estate assets relating to Cowan Systems’ business for approximately $31 million in cash.

Cowan Systems, based in Baltimore, MD, 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 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, solidifying its position as one of the largest dedicated providers in the transportation industry.

Schneider's President and CEO, Mark Rourke, stated, "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."

Upon closing, Cowan Systems will operate as a wholly owned subsidiary of Schneider. 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.

This acquisition follows earlier acquisitions of dedicated contract carriers Midwest Logistics Systems and M&M Transport Services, LLC, which are also wholly owned subsidiaries of Schneider.

As a result of these acquisitions, upon closing, Cowan Systems’ financial results will be reported in their corresponding Schneider truckload and logistics business segments. Today the company's shares have moved 1.3% to a price of $32.02. For the full picture, make sure to review Schneider National's 8-K report.

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