Daseke, Inc. (NASDAQ: DSKE) (NASDAQ: DSKEW), the largest flatbed, specialized transportation and logistics solutions company in North America, is being joined by Builders Transportation Co., a Memphis-based carrier of steel, aluminum and metal products.
Builders Transportation operates a fleet of more than 300 company trucks and nearly 500 spread-axle trailers.
The company is solely focused on traditional flatbed operations through the 48 contiguous states, primarily in the eastern two-thirds of the U.S., hauling coil steel, wire products, structural and sheet steel, aluminum products, building materials, cast iron, steel pipe and machinery. It has won Carrier of the Year awards from several of their core customers.
Under the terms of the purchase agreement, Daseke acquired Builders Transportation for a total consideration of $53.8 million, which included $3.4 million in Daseke stock. For the trailing 12-month period ended June 2018, Builders Transportation did an estimated $72.4 million in revenue and an estimated $9.7 million in Adjusted EBITDA.
“We’ve had Builders Transportation on our radar for quite some time – we’ve been impressed with the focus and family-rooted culture of the company,” said Don Daseke, chief executive officer of Daseke. “They work with A-list customers, and like our other operating companies, have a passion for their people. The company has been in business since 1954 and it has a long legacy as a family-run operation. They will be a great addition to the Daseke family.”
Builders Transportation has been family owned and operated since Frank Phillips Sr. purchased the six-truck operation in 1961 and, along with his sons, has steadily grown the business to where it is today.
According to John Phillips, CEO of Builders Transportation, Daseke is the right fit, at the right time. “Over the years, we’ve had companies approach us, but we never took any of that seriously – we didn’t want to give up what our family has built,” he said. “We have a long history and are very protective of our heritage. We have people here who have been with us their entire career. Being with Daseke lets us continue being who we are, and that’s critically important to us.”
“The group of operating companies we’re joining reads like the ‘who’s who’ in flatbed and specialized trucking,” said Gene Phillips, COO of Builders Transportation. “We’re looking forward to sharing best practices and comparing notes on business strategy with our new sister companies. The consolidated purchasing power, through Daseke Fleet Services, is also very compelling. We expect it will help us reduce our costs and make us even stronger.”