Heartland Express Acquires Washington Carrier
Yesterday, Heartland Express announced it has acquired Washington carrier Gordon Trucking, Inc.
The acquisition is valued at $300 million, giving Heartland and Gordon a combined value of $1 billion. In addition, Heartland will now have terminals spanning from Washington to Florida and from Pennsylvania to South Carolina.
In a statement confirming the acquisition, Heartland said, “Heartland acquired 100% of the outstanding voting and non-voting stock of GTI and certain associated assets. At closing, the transactions were valued at approximately $300 million before taking into account the net present value of future cash tax savings, the potential earn-out, and any post-closing working capital adjustment. Heartland expects to use approximately $165 million of its cash reserves and expects to have approximately $95 million in outstanding debt after the transaction and repayment of assumed GTI debt.”
Heartland Express says the acquisition will make the company the 5th largest asset-based carrier in North America.
Gordon Trucking’s owners, Steve and Scott Gordon, have joined Heartland’s management team, and after 50 years at Gordon’s helm, Larry and Virginia Gordon will retire.
Gordon Trucking (GTI) was founded by the Gordon family in 1946 and is headquartered in Seattle, Washington.
Gordon Trucking focused its efforts on the dry van market, however, 14% of the company’s revenue came from refrigerated operations. The company owns 2,000 tractors and 6,500 trailers.
Michael Gerdin, Chairman, President, and CEO of Heartland, said, “We searched for many years for the best fit to expand our capabilities for customers, our opportunities for drivers, and our growth for our stockholders. With GTI, Heartland acquires a major presence in the West, affording the combined customer base significant capacity nationwide through what is expected to be one of the five largest asset-based truckload fleets in North America. GTI has a well-earned reputation for superior customer service, with a modern fleet and a strong safety record. Culturally speaking, it is an excellent fit. I am pleased that Steve and Scott Gordon have joined Heartland’s management team and Larry Gordon has joined our board of directors.”