Trucking IPO Will Net Schneider Family $230 Million
Members of the Schneider family will get about $230 million from the sale of stock in the Green Bay, Wisconsin, trucking company that bears their name, a document filed March 24 with securities regulators shows.
Long privately held, Schneider has about 100 shareholders. But majority ownership and control rest with the family, including the five children of the late Don Schneider and his wife, Patricia. None of the family members holds executive posts in the firm.
Voting control of the company will remain firmly in the family’s hands. Family members will hold all of the “Class A” stock, which carries 10 votes for each vote of the “Class B” stock that will be sold to the public.
Just under 29 million shares will be offered. Of those, 16.8 million will come from the company, and 12.1 million will come from Schneider family trusts.
Schneider National Inc., meanwhile, expects to net about $281 million from the initial public offering.
Schneider ranks No. 7 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
Shares are expected to be priced initially at $18 to $20.
The filing did not say when Schneider stock will hit the market, but it likely will be within the next 30 days. Shares will trade on the New York Stock Exchange as “SNDR.”
One of the largest trucking companies in the country, Schneider earned $156.9 million in 2016 on just over $4 billion in revenue. Sales have increased 16% since 2012.
The firm fields 10,500 company trucks and uses 2,850 trucks owned by independent contractors.
Schneider has intermodal and logistics operations, but the heart of the business remains the hauling of full truckloads of freight, often over long distance. That segment generated half of the company’s revenue in 2016 and three-quarters of its earnings.
The company could receive as much as $359 million from the IPO — assuming an initial price of $19, the midpoint of the expected range — if the underwriters exercise their option to buy an additional 4.3 million shares.
The company plans to use $150 million of its proceeds to pay down debt. The rest will go for general corporate purposes, including buying $110 million worth of chassis to carry cargo containers that are transported by both train and truck.
Morgan Stanley is leading the group managing the offering, along with UBS Investment Bank and Bank of America Merrill Lynch. Passive managers include Citigroup, Credit Suisse, J.P. Morgan, Wells Fargo Securities, Robert W. Baird & Co. and Wolfe Capital Markets and Advisory.
