Schneider National secures $390 million deal to acquire Cowan Systems

In a significant strategic move, Schneider National, Inc., a leading transportation and logistics company based in the United States, has entered into a definitive agreement to acquire Cowan Systems, LLC. This acquisition is set to enhance Schneider's operations within the dedicated contract carrier segment based in Baltimore, Maryland. Founded in 1924, Cowan Systems is known for its expertise in dedicated transportation solutions. Mark Rourke, President and CEO of Schneider National, emphasized that this acquisition aligns with their strategic focus on customer-centric dedicated solutions. By integrating Cowan Systems into their operations, Schneider aims to improve service offerings and strengthen market presence. The acquisition deal is valued at approximately $390 million, with Schneider indicating that it is projected to be accretive to their earnings per share within the first year, excluding any anticipated synergies. The completion of this deal is expected in the fourth quarter of 2024, pending customary closing conditions. Schneider will finance this acquisition using existing cash and borrowings from its newly secured $400 million credit facility. Moreover, Cowan Systems will continue to operate as a wholly owned subsidiary of Schneider National, preserving its brand identity along with its workforce. There are expectations that the financial results from Cowan Systems will be integrated into Schneider's Truckload and Logistics business segments after the transaction is finalized. This acquisition highlights Schneider’s commitment to enhancing its portfolio and delivering value to its shareholders. In conjunction with this acquisition announcement, Schneider National's recent financial performance has garnered attention from analyst firms. Following its third-quarter earnings report, which reported revenues of $1.2 billion but missed the earnings projections, several analysts adjusted their outlooks on the company. Benchmark raised its stock price target to $32, maintaining a Buy rating while BofA Securities upgraded Schneider's rating to Buy and increased the target to $34. However, due to weaker performance observed in the third quarter, earnings estimates for 2024 and 2025 were reduced. Despite these challenges, Schneider National reaffirms its focus on shareholder returns and operational efficiency, as demonstrated by its active share repurchase program.