Addison based trucking company Daseke Inc, the largest owner of flatbed equipment in the US, added 3 more carriers to their fleet, increasing their annual revenue past $1 billion, according to Dallas News.
Daseke added Tennessee Steel Haulers & Co., the Roadmaster Group, and Moore Freight Service to their list of carriers in order to gain access to higher margin freight.
President and CEO Don Daseke said, “Today is a significant milestone for Daseke, as our company’s total revenue, EBITDA and fleet size are all now approximately 40 percent larger. We’ve added three exceptional organizations to our family of operating companies focused on unique sectors with promising growth characteristics.”
This growth puts Daseke on track for revenue of $1.2 billion and $143 million in earnings before taxes and depreciation in 2017. Daseke started in 2009, making only $30 million in revenue and earning a $6 million profit that year.
Daseke did not release the amount paid for the companies; however, the combined revenue of all 3 companies totals approximately $320 million.
With the acquisition of Tennessee Steel Haulers & Co. (TSH & Co.), Daseke is adding even more flatbed trucks to their repertoire. TSH & Co. is a second generation company based in Nashville with a 1,100 flatbed-focused fleet. TSH & Co. operates solely with owner-operators.
Welcome TSH & Co. to the Daseke family of companies! https://t.co/sQ6SsW9TEF pic.twitter.com/vqLBs4TvSv
— Daseke Inc. (@DasekeInc) December 4, 2017
Roadmaster Group is a high-security cargo carrier based in Phoenix, Arizona. Roadmaster is a leading US carrier of ammunition and explosives.
Welcome The Roadmaster Group to the Daseke family of companies! https://t.co/9bUrAKdrrS pic.twitter.com/CJd4H71HJ2
— Daseke Inc. (@DasekeInc) December 4, 2017
Moore Freight Service, based in Mascot, Tennessee, delivers commercial sheet glass throughout the Midwest, East Coast, and Canada.
Welcome Moore Freight Service, Inc. to the Daseke family of companies! https://t.co/HQEkUKoRF8 pic.twitter.com/9uhAbdbA8s
— Daseke Inc. (@DasekeInc) December 4, 2017
Craig Stanley, co-CEO of TSH & Co., claims his company has built a relationship with the Daseke management team for many years, making this merge no surprise to the team. Stanley explains, “The way Daseke does business convinced our family that a merger was the right move for our future growth. Don (Daseke) runs the company the way you would want it run.”
Since February, when Daseke went public, the company has made significant efforts to grow and expand. Similarly, the company has also recently acquired R&R Trucking, Schilli Companies, Big Freight Systems and Steelman Companies.
Daseke moves freight for companies like Boeing, Caterpillar, and Nucor as well as the U.S. Department of Defense; however, controls less than 1% of the $133 billion trucking niche.
Reuters responded, “These deals are the latest example of major trucking players in the deeply fragmented and low-margin industry scooping up smaller operators ahead of looming digital record-keeping regulations and amid a shortage of drivers in the industry.”
Daseke shares rose 1.2% on Monday, now costing $12.99 a share.
Don Daseke told Reuters, “There is a tremendous opportunity to consolidate what is a very fragmented market.
These entrepreneurs that are joining us have great relationships that we want them to continue to have and to own and accentuate.”