Schneider National, one of the top trucking and logistics companies, just made a power play by buying another company, Cowan Systems, for $390 million. On top of that, they’re spending another $31 million to grab Cowan’s real estate. Together, that’s $421 million to expand their business in a big way.
Cowan Systems, based in Baltimore, Maryland, has been around for 100 years. They specialize in “dedicated trucking”. A company like Walmart or Coca-Cola might need a specific fleet of trucks to move their stuff consistently, and Cowan provides that service. They’ve got over 1,800 trucks, 7,500 trailers, and a network of 500 owner-operators (independent drivers contracted to haul loads). Plus, they’re spread out across 40 terminals in the Eastern U.S.
By buying Cowan, Schneider is doubling down on its “dedicated” trucking business. Dedicated trucking is a big deal because it’s stable and predictable. When a company signs up for dedicated services, they’re committing to long-term contracts, which means steady income for Schneider.
After this deal, Schneider will have over 8,400 tractors dedicated to specific companies, making up 70% of their total truckload fleet. Their dedicated trucking division alone will rake in nearly $2 billion a year. Add that to their other business segments, and Schneider’s overall revenue is projected to hit $6 billion.
Schneider’s CEO, Mark Rourke, said this move fits perfectly with their long-term strategy. Basically, they want to be the go-to company for trucking solutions, especially for businesses that want personalized, customer-focused services.
Big moves like this don’t come cheap. Schneider is using cash they already had, plus they’re taking out a $400 million loan to close the deal. They expect everything to be finalized by the end of the year. The good news? They think this acquisition will start making them more money right away.
Joe Cowan, the chairman of Cowan Systems, made it clear that selling his company wasn’t just about the money. He wanted to make sure Cowan ended up in good hands. In his words, he wanted to know the company would continue to grow and that its values would live on. Schneider’s culture and approach to business seemed like a good fit, so he’s confident Cowan’s legacy will thrive under their ownership.
This isn’t Schneider’s first big acquisition in recent years. In 2022, they bought Midwest Logistics Systems for $263 million. That deal added 900 trucks to their fleet. Then, in 2023, they acquired M&M Transport Services, which came with another 500 trucks.
All of this shows a clear pattern: Schneider is aggressively growing its dedicated trucking division. Why? Because it’s reliable, and customers love knowing they have trucks reserved just for them.
By leveraging their expertise and resources, Lading Logistics aims to provide efficient and reliable international shipping and logistics solutions for their clients.
