Schneider National announced Tuesday after the market closed it has acquired dedicated carrier M&M Transport Services for an undisclosed sum.
Massachusetts-based M&M Transport operates a fleet of 500 trucks and 1,900 trailers out of 12 locations in the Northeast, Midwest and Southwest. The company’s account list includes Fortune 500 retail and manufacturing companies.
Financial terms of the transaction were not disclosed. The deal is expected to be immediately accretive to earnings.
Schneider (NYSE: SNDR) said the deal puts its dedicated segment close to 6,500 trucks and $1.5 billion in annual revenue. The unit generated $1.2 billion in revenue (excluding fuel surcharges) with nearly 5,900 trucks last year.
“This is an exciting opportunity to leverage the best of both companies and use our complementary capabilities to deliver enhanced value to our customers and stakeholders,” said Mark Rourke, Schneider president and CEO.
M&M transport will continue to operate under its current banner as a subsidiary of Schneider.
Last year, Schneider acquired dedicated carrier Midwest Logistics Systems in a $263 million deal. The company had 900 tractors and $170 million in annual revenue (excluding fuel surcharges) at the time.
“Now, as a wholly owned subsidiary of Schneider, M&M Transport will continue to leverage our strengths while capitalizing on Schneider’s broad capabilities and resources to support continued growth and the consistent, reliable service that our customers expect from M&M Transport,” said Mark Warsofsky, M&M Transport’s founder.
Scopelitis, Garvin, Light, Hanson and Feary served as adviser to Schneider. G2 Capital Advisors was the sole financial adviser to M&M Transport.
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