Daseke Inc. announces acquisition of Builders Transportation Co.

Late last week, Addison, Texas-based Daseke Inc., a provider of flatbed, specialized transportation and logistics services said it acquired Memphis-based Builders Transportation Co., a steel, aluminum, and metal products carrier.

Daseke said the purchase price for Builders was $53.8 million, which included $3.4 million in Daseke stock. And it noted that for the 12-month period ending June 2018 Builders had an estimated $72.4 million in revenue and an estimated $9.7 million in adjusted EBITDA.

Builders’ fleet is comprised of more than 300 company trucks and almost 500 spread-axle trailers. Its core focus is 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, and it has won Carrier of the Year awards from several of their core customers.

“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, in a statement. “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 was acquired by Frank Phillips in 1961, when it was a six-truck operation, with the business being led by Phillips and his sons since that time.  

“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.”

Cowen and Co. analyst Jason Seidl wrote in a research note that this deal is viewed as a continuation of Daseke’s plan to roll up the heavyweight and transport sectors, adding that is anticipates “moderate synergies” from the deal.