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Schneider announced Tuesday the acquisition of assets from regional and dedicated truckload carrier deBoer Transportation. Terms of the transaction were not disclosed.
The deal allows Schneider to assume control of the Blenker, Wisconsin-based carrier's fleet of 160 tractors and 660 trailers. A local facility and a maintenance shop near Dallas are not part of the transaction.
"Consistent with Schneider's strategy, the company is expected to be quickly integrated into Schneider's existing businesses, with drivers and equipment being deployed to support growth opportunities in dedicated and power only operations," a press release read.
Green Bay, Wisconsin-based Schneider ended the first quarter with a net cash position of more than $60 million, reducing its outstanding debt by a similar amount from the fourth quarter to the first. Management recently said that it would likely stay away from share repurchases as a means of deploying cash given that nearly 70% of its shares were already owned by Schneider family members. A meaningful buyback would have further constricted the stock's availability to investors.
That essentially leaves M&A as its primary means of capital deployment, in addition to a modest quarterly dividend of 8 cents per share. Earlier this year, Schneider added dedicated fleet Midwest Logistics Systems to its network in a deal valued at $263 million.
DeBoer started 55 years ago as a family-owned cattle hauler in rural Wisconsin. The company expanded throughout the years adding cross-border Mexico service and trailer-on-flatcar capabilities. Today, its offerings include brokerage and other logistics services.
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