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Good Tuesday morning. Schneider National, a staple in the transportation industry since 1935, just announced a pretty big acquisition: Baltimore-based Cowan Systems, LLC.

The price tag? $390 million in cash and an additional $31 million for real estate

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Schneider’s Strategic Growth Path

Schneider’s acquisition of Cowan Systems represents another bold step in its quest to dominate the dedicated trucking space. Here's how this fits into its long-term vision:

• Dedicated Strength: With the Cowan acquisition, Schneider will operate over 8,400 dedicated tractors, representing 70% of its TL fleet.
• Revenue Boost: Schneider is set to approach $2 billion in annual dedicated contract revenues, further solidifying its position as a leader in this segment.
• Recent Acquisitions: This move follows earlier acquisitions of Midwest Logistics Systems and M&M Transport, which also focused on dedicated trucking.

A Century of Legacy Meets Expansion

• Founded: In 1924, Cowan Systems was started by Joseph Cowan, father of Chairman Joe Cowan, and has since grown into a major East Coast player.
• Operations: The company operates 1,800 trucks and 7,500 trailers across 40+ locations in the Eastern and Mid-Atlantic U.S.
• Core Services: Dedicated contract carriage complemented by brokerage, drayage, and warehousing.

“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. With Schneider, I know our legacy will not just be preserved but will continue to thrive.” – Joe Cowan, Chairman of Cowan Systems

Cowan will continue to operate under its existing name as a wholly owned subsidiary of Schneider, maintaining its trusted brand identity while gaining access to Schneider’s extensive resources and infrastructure.

For Schneider, headquartered in Green Bay, Wisconsin, this acquisition isn’t just about tractors—it’s about network density and customer value. The deal significantly strengthens Schneider’s presence east of the Mississippi River, a region where Cowan’s operational focus adds strategic depth.

Mark Rourke, Schneider’s President and CEO, spoke on the significance of the acquisition:

“This aligns with Schneider’s long-term vision to have customer-centric Dedicated solutions as the cornerstone of its Truckload segment. By complementing our organic growth with acquisitions like this, we are broadening our presence to provide greater value to our customers and stakeholders.”

Additionally, Cowan’s lightweight equipment offers efficiency advantages, reducing emissions and saving transportation costs for customers—a win-win in today’s environmentally conscious supply chain landscape.

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What This Means for the Industry

The acquisition is part of a broader trend of consolidation within the transportation sector. As private equity firms and large carriers seek to diversify and streamline operations, deals like this one demonstrate the increasing value of dedicated trucking solutions.

As Benjamin Gordon of Cambridge Capital pointed out at FreightWaves' F3 conference, “If you were a public logistics company growing 20% during COVID, shareholders now expect you to keep performing—even in a freight recession.” For companies like Schneider, M&A is proving to be the key to sustaining growth and meeting those high expectations.

Gordon also discussed the broader shift toward strategic acquisitions, particularly in asset-heavy and asset-light segments. Deals like this expand geographic reach and service offerings and also create synergies in areas like dedicated transportation, drayage, and brokerage services.

This acquisition reinforces Gordon's observation that “diversification is key” as companies seek to insulate themselves from market volatility and expand their value propositions.

Looking Ahead

The deal, expected to close in Q4 2024, will be financed through a mix of existing cash and a $400 million credit facility. Schneider predicts the acquisition will boost its earnings per share within the first year.

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