Schneider National and Cowan Systems: Synergistic Growth and Expansion Blueprint One Year After the Merger

It has been over a year since Schneider National acquired Baltimore-based Cowan Systems for $390 million. Company executives say the merger has had a positive impact on both businesses. Discussing third-quarter results, Schneider attributed its 17% year-over-year revenue growth primarily to increased truckload volumes from Cowan.

For Cowan, now a subsidiary of Schneider, the merger has opened new doors of opportunity for its existing customers, said Cowan President Steve Wells. Retaining the Cowan brand also made the transition smooth.

Wells spoke with Trucking Dive about the integration of Cowan with Wisconsin-based Schneider and the future plans for both companies.

How has being part of Schneider National enhanced Cowan's service capabilities?

It has certainly enhanced our ability to provide dedicated solutions. Schneider has done this by leveraging its expertise and extensive support network. Keep in mind, Cowan has been a family-owned regional carrier for a hundred years, while Schneider has operations throughout the United States, which gives us the opportunity to expand our operational geographic footprint through the acquisition.

In the collaboration between the two organizations, the core principles we uphold are improving the customer and employee experience. We have achieved this in maintenance, driver recruitment, and to some extent in technology. We have been able to leverage Schneider's scale, size, and industry expertise to bring value-added solutions to the Cowan organization in these areas.

How has Schneider's retention of the acquired company's brand name benefited Cowan's transition?

In the process of selling the Cowan organization, preserving the brand as much as possible was extremely important to us. The Schneider team also placed great importance on retaining our brand. We have a good reputation, loyal customers, and a loyal driver base. Retaining the brand ensured a seamless transition without any disruption to customers or employees.

Personally, this confirms that Schneider values the Cowan brand. At the same time, through the acquisition, we have the opportunity to truly grow as a subsidiary under its umbrella. Cowan's differentiator lies in its lightweight fleet, which is partly related to the brand's reputation; we are known as a heavy-haul carrier, but also for our high level of service execution. Therefore, from a just-in-time service perspective, we wanted to maintain these fundamental values of the Cowan organization throughout the process, and Schneider has certainly supported and facilitated that.

Has the merger brought new opportunities for Cowan's existing customer base?

Absolutely. I think one interesting aspect on the Cowan side is that we did have some customers who had little or no relationship with Schneider at the time of the acquisition. This provides our existing customers with access to more freight solutions. Cowan's business is positioned as dedicated van fleets, while Schneider brings a range of services, including intermodal, specialized transportation, a strong brokerage business, and supply chain management. Many of these solutions we previously did not have or had limited capability in, which greatly expands our range of capabilities.

So, from a customer experience standpoint, in the past Cowan might not have discussed certain opportunities with customers, but now this allows us to truly meet the diverse needs of our customers. At the same time, Schneider has also opened up its customer base to us, allowing us to reach their customers.

I think one of the biggest benefits we have experienced since the deal closed is that our sales and operations teams have truly integrated well. This allows us to collaborate and maximize opportunities. From a scheduling standpoint, we take pride in customizing solutions for existing and potential customers. For both Cowan and Schneider, this truly provides more tools that enable us to expand beyond our traditional service areas west of the Mississippi River.

Has the merger helped with employee recruitment and retention?

As a former acquirer, in Cowan's history as a family business, we made several acquisitions, so I have deep insight into that, but I have never been the acquired party. I have seen past acquisitions fail. From my perspective, this transition has been very smooth, which is largely due to the extensive preparation and due diligence before the announcement.

We developed a good communication plan together. We share the same values and similar culture, which made the integration easier and more natural. From an employee retention standpoint, being part of a larger organization like Schneider has created more career development opportunities for Cowan employees, which has positively impacted employee engagement.

There is a sense of excitement because, as a small family carrier, career paths within the organization were limited. What has had the greatest impact on retention is the prospect of more career opportunities within the broader network and Schneider's nationwide services.

What are the future plans for Cowan and Schneider?

From an operational strategy standpoint, I have a lot I could share. But I would say that, from Cowan's perspective, we are excited about the future opportunities and have strong support from Schneider.

We are ready to seize the opportunities of an improving freight market and truly grow our dedicated operations. Looking back at Cowan over the past few years, as a family business facing industry pressures, we were somewhat capital-constrained and, as responsible fiduciaries, had to limit investment in the business.

Looking ahead, we will truly expand our services, especially specialized services. We are very interested in the demand for lightweight and just-in-time solutions in new geographic areas. We have already begun expansion into new territories in the first quarter, including the Gulf Coast and Texas markets, driven by the needs of existing key customers who require us to provide services in new regions. This is a great example of what the acquisition means for Cowan—it enables us to truly expand into new geographic areas where we traditionally would not have participated.

Additionally, many customers have enjoyed our service levels for years, but our ability to expand the business was limited. Now those constraints have been lifted, and we have the opportunity to truly ramp up our sales efforts.