Truckload carrier Heartland Express announced yesterday that they acquired Tacoma, Washington-based Interstate Distributer Co. from Saltchuk Resources Inc.
Heartland Express Acquires IDC For $113 Million
According to a news release, “Heartland expects to integrate IDC into Heartland’s existing operations and operate under the Heartland brand soon after closing.” The acquisition was made for approximately $113 million, which includes equity, assumed debt, and acquired cash.
Heartland’s acquisition gives them access to IDC’s fleet of 1350 company tractors and 4700 trailers. Last year IDC generated $325 million in total revenue.
Said Heartland President and CEO Michael Gerdin:
“We are excited to add IDC’s high quality drivers, experienced personnel, and strong customer base to Heartland’s operations. Our first criterion is always safe and highly qualified professional truck drivers. IDC has an experienced driver base with improving safety results over the past several years, and we are impressed by their culture. Additionally, IDC is an excellent operational fit, as its terminal network has nearly direct overlap with our current locations. Heartland will gain significant additional traffic density in the West, and our stronger eastern network will improve service for IDC’s customers in the East. Since expanding our footprint and density with the acquisition of Gordon Trucking, Inc. in late 2013, we have invested significantly in a new tractor and trailer fleet, returned our operating ratio to the low- to mid-80s, repaid all of the acquisition debt, and accumulated approximately $170 million in cash. With a strong operating base and confidence in the future, we have been carefully evaluating several acquisition candidates and ranked IDC at the top because of the direct path to achieving synergies.”