Flatbed and specialized transportation provider Daseke, Inc. has acquired Memphis-based metal hauler Builders Transportation Co. The purchase adds Builders' fleet of more than 300 trucks and nearly 500 spread-axle trailers to Daseke, which already is the largest company of its kind in North America with a combined fleet of over 5,200 trucks and 11,000 flatbed and specialized trailers.
Builders' traditional flatbed operations through the 48 contiguous states are focused in the eastern two-thirds of the U.S. hauling coil steel, wire products, structural and sheet steel, aluminum products, building materials, cast iron, steel pipe, and machinery.
"We've had Builders Transportation on our radar for quite some time. We've been impressed with the focus and family-rooted culture of the company," said Don Daseke, CEO of Daseke. "The company has been in business since 1954 and it has a long legacy as a family-run operation. They will be a great addition to the Daseke family."
For the 12-month period ending in June 2018, Builders had an estimated $72.4 million in gross revenue and $9.7 million in adjusted EBITDA. Under the terms of the purchase agreement, Daseke acquired Builders for a total consideration of $53.8 million including $3.4 million in Daseke stock.
Builders has won "Carrier of the Year" awards from several of its core customers, the company noted. It has been family owned and operated since Frank Phillips Sr. purchased the six-truck operation back in 1961, and along with his sons has steadily grown the business to where it is today.
"Over the years, we've had companies approach us but we never took any of that seriously—we didn't want to give up what our family has built,” said Builders CEO John Phillips. "We have a long history and are very protective of our heritage. We have people here who have been with us their entire career. Being with Daseke lets us continue being who we are, and that's critically important to us."
Investment analysis and equity research firm Cowen issued a brief today on the Builders acquisition stating it believes there will be "moderate synergies from the deal" with Daseke seeing moderate per-share earnings growth next year. "We view the acquisition as part of [Daseke's] ongoing plan to roll up the heavyweight and transport sectors," Cowen stated in the brief.