Schneider National is continuing to grow its dedicated business with the acquisition of Cowan Systems.

Schneider, through certain wholly owned subsidiaries, has reached a deal to acquire Cowan Systems LLC and affiliated entities for a cash purchase price of approximately $390 million.

The sale includes separate agreements to purchase certain real estate assets relating to Cowan Systems’ business for approximately $31 million in cash.

Based in Baltimore, Md., Cowan Systems is primarily a dedicated contract carrier with a portfolio of complementary services including brokerage, drayage and warehousing. Cowan Systems’ Dedicated customers include leading producers of retail and consumer goods, food and beverage products, industrials, and building materials. 

The company operates approximately 1,800 trucks and 7,500 trailers across more than forty locations throughout the Eastern and Mid-Atlantic regions of the United States. Cowan Systems’ lightweight equipment enables customers to move more freight per shipment, saving transportation expenses and reducing emissions.

The acquisition will further complement Schneider’s Dedicated organic growth success. Including Cowan Systems, Schneider will operate over 8,400 dedicated tractors — approximately 70% of Schneider’s truckload fleet.

Cowan Systems, founded in 1924, has a history of consistent growth. Upon closing, Cowan Systems will operate as a wholly owned subsidiary of Schneider, continuing a successful trajectory with its associates and trusted brand.

“My father started Cowan Systems more than 100 years ago, and with the expertise, passion and dedication of so many amazing employees along the way, it has grown in more ways than he could have ever imagined,” said Cowan Chairman Joe Cowan.

“When it was time for me to move to a new chapter in my life, I wanted to be sure the organization was in good hands, at a company with a similar culture and values, and that it would continue to grow. With Schneider I know our legacy will not just be preserved, but it will continue to thrive.”

The transaction is expected to close in fourth quarter 2024, subject to customary closing conditions, and it will be financed through existing cash on hand as well as borrowings under Schneider’s new $400 million delayed draw term credit facility. 

This transaction follows earlier acquisitions of dedicated contract carriers Midwest Logistics Systems and M&M Transport Services, which are also wholly owned subsidiaries of Schneider.