Schneider National, Inc. (NYSE: SNDR), a leading provider of transportation, intermodal, and logistics services, has entered into a definitive agreement to acquire Cowan Systems, LLC and its affiliated entities (collectively “Cowan Systems”) for approximately $390 million in cash, subject to adjustments. The deal also includes separate agreements to acquire real estate assets related to Cowan Systems’ operations for around $31 million in cash.
Headquartered in Baltimore, Maryland, Cowan Systems specializes in dedicated contract carriage, with a diverse range of services, including brokerage, drayage, and warehousing. The company serves prominent clients in industries such as retail and consumer goods, food and beverage, industrials, and building materials. Cowan operates a fleet of approximately 1,800 trucks and 7,500 trailers across over 40 locations in the Eastern and Mid-Atlantic U.S. Its lightweight equipment helps clients move more freight per shipment, optimizing transportation costs and reducing emissions.
This acquisition is expected to enhance Schneider’s Dedicated services, which have already seen significant organic growth. With the addition of Cowan Systems, Schneider will operate more than 8,400 Dedicated tractors—about 70% of its Truckload fleet—solidifying its position as one of the largest dedicated service providers in the transportation sector.
Mark Rourke, President and CEO of Schneider, commented, “This acquisition supports Schneider’s long-term strategy of making customer-centric Dedicated solutions the cornerstone of our Truckload segment. By supplementing our organic growth with acquisitions like this, we can expand our reach and deliver more value to customers and stakeholders.”
Founded in 1924, Cowan Systems has experienced steady growth over the years. After the acquisition is completed, Cowan will operate as a subsidiary of Schneider, continuing its successful trajectory and maintaining its well-established brand and workforce.
Joe Cowan, Chairman of Cowan Systems, shared, “My father founded Cowan Systems over 100 years ago, and with the dedication of many incredible employees, it has grown far beyond what he ever envisioned. As I transition to a new chapter, I wanted to ensure the company would be in good hands. With Schneider, I’m confident our legacy will not only be preserved but will continue to thrive.”
The acquisition is expected to boost Schneider’s earnings per share within the first year, excluding any anticipated synergies. The transaction is set to close in the fourth quarter of 2024, pending the satisfaction of customary closing conditions. It will be financed using Schneider’s available cash reserves and a new $400 million delayed draw term credit facility. Following the acquisition, Cowan’s financial performance will be integrated into Schneider’s Truckload and Logistics business segments.
This acquisition follows Schneider’s earlier purchases of Midwest Logistics Systems and M&M Transport Services, LLC, both of which are now part of Schneider’s wholly owned subsidiaries.