With annual revenues valued at north of $2.8 billion, Schneider National is one of the largest logistics and intermodal services companies in the United States, currently the 17th biggest according to estimates from Armstrong & Associates. It's poised to move up that list with the recent acquisition of a mid-size logistics firm that's headquartered in the Buckeye State.

On the last day of 2021, Schneider made its merger with Midwest Logistics Systems official by becoming its majority stakeholder. MLS and its 1,000 drivers won't be leaving the region, considering the 900-truck firm is located in Ohio and Schneider National is based in Green Bay, Wisconsin. It does have over two dozen offices, though, most of which are in the nation's midsection.

Mark Rourke, president and CEO of Schneider, said the company's dedicated workplace culture and values is what made MLS a shoo-in for Schneider.

"Preserving the MLS identity is essential," said Rourke, per Overdrive magazine. "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."

MLS will remain MLS
All told, the all-cash deal is reportedly worth approximately $263 million. Despite Schneider now holding 100% ownership and equity interest in the Celina-based logistics firm, MLS will reportedly retain its name and will operate as an independent subsidiary of Schneider.

"With this acquisition," Rourke added, "we believe Schneider is on track to generate $1 billion in annual revenue in our dedicated operations with over 5,000 trucks."

In terms of annual gross revenue, Schneider is worth $2.8 billion, according to market research firm Armstrong & Associates, behind Penske Logistics ($3.2 billion) but ahead of NFI Industries ($2.6 billion). The single largest third-party logistics provider in the U.S. is C.H. Robinson, whose revenues amount to nearly $15.5 billion.

Rourke noted that with MLS' annual revenues of $205 million, Schneider's acquisition is expected to boost its positioning in third-party logistics space with little delay.   

Schneider has been in the logistics industry for over 85 years.Schneider has been in the logistics industry for over 85 years.

What is dedicated service?
With the acquisition, Schneider will expanding its dedicated services branch of operational offerings. Dedicated services is the equivalent of having a private fleet, supplying organizations that rely on logistics and delivery with a full suite of the equipment, personnel and assets businesses need to remain competitive in time-sensitive environments. Perhaps in light of the supply chain challenges that have manifested themselves over the past year, more logistics providers appear to be more dedicated to dedicated services. As Transport Dive noted, in an earnings call this past October, the chief executive officer of USA Truck said he expects half of the company's cash flow — meaning both profits and revenue — to derive from dedicated servicing by the end of 2024.

"This is the best environment to make that investment and that shift in," USA Truck CEO James Reed said. "As a result, [customers] are more willing to move long-term commitments into dedicated configurations."

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