Poor market conditions have for now scuttled TL carrier Schneider National’s plans to spin-off its logistics subsidiary, Schneider Logistics Inc. (SLI) The Green Bay, WI-based company said it halted efforts to execute an IPO of SLI because of the “current state of the equity capital markets.”
“Over the past 12 months, we have invested a significant portion of the capital expected in proceeds from an IPO into Schneider Logistics’s Summit technology platform,” said Don Schneider, president of Schneider National. “We also are committed to continue the necessary capital funding underlying Schneider Logistics’s aggressive growth plans to be a significant player in global logistics.”
Chris Lofgren, Schneider Logistics’s CEO, said SLI will “continue to take strong steps to position Schneider Logistics as a dominant player in global supply chain integration. Our projected 2001 growth rate of 45% attests to the fact that our services are creating recognized value for a growing number of customers.”
Industry analyst Martin Labbe said he thinks Schneider is making the right decision to delay the spin-off plan.
“Right now the market is not good. I’m sure a lot of stocks are depressed,” Labbe told Fleet Owner “If they’re expecting an IPO of $30 and can only get $18, my guess is it would be a significant loss.”
Schneider Logistics said it will continue to operate as a wholly-owned subsidiary of Schneider National, functioning as a separate non-asset based company, providing a suite of services in the logistics marketplace.
