Schneider Acquires Midwest Logistics Systems
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Schneider National is growing its dedicated operations with the acquisition of truckload carrier Midwest Logistics Systems.
The Green Bay, Wis.-based transportation, intermodal and logistics services provider acquired 100% of the equity interest in the Celina, Ohio, company in a deal announced Jan. 4.
The carrier will run as an independent subsidiary with its professional drivers and associates continuing to operate under the Midwest Logistics Systems name.
“Preserving the MLS identity is essential,” Schneider CEO Mark Rourke said in a statement. “The carrier’s family-owned nature combined with its strong culture and customer service make it a valuable contributor for growing Schneider’s dedicated operations.”
MLS is a dedicated carrier with more than 1,000 professional drivers and 900 tractors in 30 central U.S. locations. Its annual revenue is approximately $205 million. Schneider said the acquisition is expected to be immediately accretive to its earnings per share. MLS financial results will be reported in dedicated operations as part of the truckload segment beginning in the first quarter of this year.
“With this acquisition, we believe Schneider is on track to generate $1 billion in annual revenue in our dedicated operations with over 5,000 trucks,” Rourke said.
The enterprise value of the transaction was about $263 million. Schneider financed the deal through cash on hand. Scopelitis, Garvin, Light, Hanson & Feary served as Schneider’s adviser, and Frost Brown Todd advised Midwest Logistics Systems.
“Schneider is a well-established company and a great cultural fit,” Midwest Logistics Systems Vice President Dave DeMoss said. “We are excited to be a key component to Schneider’s dedicated growth strategy.”
Schneider ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and No. 15 on the Transport Topics Top 50 list of the largest logistics companies. — Transport Topics
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