Green Bay, Wisconsin-based Schneider announced today that the company is growing its dedicated operations with the acquisition of an Ohio-based truckload carrier, Midwest Logistics Systems (MLS).
Schneider already provides long-haul freight transportation and intermodal and logistics services, but the deal for MLS, which is considered a leading dedicated carrier, adds 1,000 professional drivers who operate 900 tractors across 30 central U.S. locations to Schneider’s roster of assets.
Schneider already has acquired 100% of the equity interest in MLS, which will run as an independent subsidiary of Schneider. MLS drivers and associates will continue to operate under the MLS name.
“Preserving the MLS identity is essential,” Schneider President and CEO Mark Rourke said in a release. “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. 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.”
MLS' annual revenues, unaudited for the 12-month period that ended Sept. 30, are about $205 million, and its acquisition by Schneider is expected to immediately grow Schneider’s earnings per share.
MLS financial results will be reported in dedicated operations as part of Schneider’s truckload segment beginning this quarter. The enterprise value of the Schneider-Midwest Logistics Systems transaction was about $263 million. Schneider financed the transaction with cash on hand.
See also: Schneider reports 147% earnings surge in third quarter
Offering perhaps one of the broadest portfolios in the industry, Schneider’s solutions include regional and long-haul truckload, expedited, dedicated, and bulk transport in addition to intermodal, brokerage, warehousing, supply chain management, port logistics, and logistics consulting.
Schneider brings in nearly $4.6 billion in revenue annually, according to its release. The company also said in a separate release that it will report fourth-quarter 2021 earnings early next month, on Feb. 3.
